RBI to reduce risk weight on home loans


By Accommodation Times Bureau

Shares of banks and home finance companies exhibited a sudden hike , on June 8 after the RBI’s announcement of the decision to reduce the risk weight on home loans; on June 7 afternoon;  as a part of its bi-monthly monetary policy review.

For private and public sector banks the RBI’s decision might increase lending marginally, and could also help in pushing loans to buyers of affordable homes.

Experts’ views are saying that the central bank’s decision is though positive, but it may not result in a big jump in home loan growth. Currently the decision of RBI is seemingly applicable to banks only but when the National Housing Bank, the regulator for HFCs will adopt a similar decision, home finance companies (HFCs) are also expected to benefit.

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