Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Housing finance firms to get additional liquidity support of Rs 20k crore

The Rs 20,000 crore is in addition to Rs 10,000 crore support announced earlier by the housing sector regulator NHB.

, ET Bureau|
Updated: Aug 24, 2019, 12.23 PM IST
The government has also decided that a partial credit guarantee scheme to support liquidity crisis in NBFCs, including HFCs
Mumbai: Capital-starved non-banking finance companies (NBFCs) may see signs of easing after finance minister Nirmala Sitharaman announced a slew of measures aimed at reviving them.

The National Housing Bank (NHB) can now extend up to Rs 30,000 crore credit lines to NBFCs, instead of Rs 10,000 crore earlier. Sitharaman said the Partial Credit Guarantee Scheme for purchase of pooled assets of NBFC/housing finance companies (HFCs) to up to Rs 1 lakh crore will be monitored at the highest level in each bank.

“NBFCs (may get) a breather as they are likely to resume efforts towards new business expansion ahead of a busy festive season,” said Umesh Revankar, CEO, Shriram Transport Finance. “Liquidity will definitely improve easing the tight situation past 11 months.”

“Investor sentiment would revive now for NBFCs,” said Vishal Kampani, managing director, JM Financial group. “It is prompt start as the finance minister has clearly taken cognisance of industry concerns. Expected measures for HFCs and contruction financing would give relief to housing sector.”

Sitharaman also hinted at new measures for real estate/housing and construction financing next week.

The announcement of co-origination between banks and NBFCs is an encouraging move, said Jaspal Bindra, chairman at Centrum group. “The key lies in executive of those measures,” he said.

Sitharaman also insisted on future collaborations between banks and NBFC in originating new consumer loans.

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service