New norms likely to affect to home loan companies

The National Housing Bank (NHB) has raised standard assets provisioning on retail housing finance from 0.1% to 0.4% that will directly affect to the revenues of home loan companies. “The new rules haven’t come into effect as NBH has not yet decided” NHB executive director RV Verma, said in a seminar on inclusive growth by Skoch.
The new norms would have a huge effect to the home loan providers , as per the reports the India’s biggest home loan provider HDFC would have to suffer 140 crore. According to the HDFC officials company as a precaution already has made an excess provision of. 310 crore on their books and this will protect them with the dire consequences of the forthcoming norms.
Mr. Verma more added that “due to rise in property rates and interest rate demand for housing finance has severely affected and this will also affect to the realtors.” He said NHB is not looking for any immediate increase in rates.

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