Tag: NHB

Housing FinanceLatest Stories

NHB Flags ₹933 Cr Extra Bad Loans in PNB Housing Finance

MUMBAI: PNB Housing Finance announced on Thursday that the National Housing Bank (NHB) has instructed it to reveal an additional ₹933 crore in bad loans from March 2023, following supervisory audits. Initially, the lender reported gross non-performing assets (NPAs) at ₹2,271.36 crore. However, after inspections, an extra ₹933.58 crore was discovered, raising the total gross NPAs to ₹3,204.94 crore. The discrepancy originated from a restructuring process in FY22-23 that did not comply with regulatory standards. This involved two project finance loan accounts, where interest rates were lowered for competitive advantages, even though both accounts were performing well at the time.…

Housing FinanceLatest Stories

HFCs Gain NHB Support to Diversify Funding, Lower Loan Costs

MUMBAI: Housing finance companies (HFCs) are set to experience reduced borrowing costs following the National Housing Bank’s (NHB) approval of partial credit enhancement (PCE) for bonds they issue. This initiative aims to enable HFCs to pass on the benefits of lower funding costs to borrowers, particularly those in the affordable housing sector. In a letter dated October 6, the NHB notified housing finance companies that it would offer PCE on secured non-convertible debentures (NCDs) they issue, with the goal of helping them “diversify their funding sources” and “reduce reliance on banks.” The NHB stated that the facility would only be…

Housing FinanceLatest Stories

NHB directs housing finance firms to pay interest on advance EMIs

The National Housing Bank (NHB) has instructed housing finance companies to provide interest on advance payments made by borrowers that have not been immediately applied to their Equated Monthly Instalments (EMIs) and are instead held in sundry or suspense accounts, according to sources familiar with the situation. The interest should be paid at the same rate applicable to the customer’s home loan. This initiative aims to ensure fair lending practices and prevent borrowers from incurring excessive interest costs when their advance payments are not applied promptly. “NHB is fundamentally ensuring that housing finance companies cannot profit from holding onto customers’…