Functions of national housing bank

2. Agenda
• Origin of National Housing Bank
• Establishment of National Housing Bank
• Objective
• Functions Of National Housing Bank
• Articles

3. Origin of National Housing Bank
• It was observed during the 7th five year plan, the Indian housing sector was not
progressing due to non availability of long term finance.
• Therefore, a high level group was setup under the chairmanship of C.Rangarajan.
• This group recommended setting of autonomous institution as NHB.

4. Establishment of National Housing Bank (NHB)
• NHB was established on July 09, 1988, under National Housing Bank
Act, 1987.
• It is wholly owned subsidiary of Government of India.
• Head Quarters : New Delhi
• MD & CEO : Sarada Kumar Hota

5. Objective
• To promote a sound, healthy, viable and cost effective housing finance system to
cater all segments of the population and to integrate the housing finance system
with the overall financial system.
• To promote a network of dedicated housing finance institutions to adequately
serve various regions and different income groups.

6. Objective
• To make housing credit more affordable.
• To regulate the activities of HFC’s based on regulatory and supervisory authority
derived under the Act.
• To encourage public agencies to emerge as facilitators and suppliers of serviced
land, for housing.

7. Functions Of National Housing Bank
• Regulation & Supervision
• NHB has come up with guidelines for recognizing HFCs for its financial
assistance, guidelines for financial assistance .
• Issues guidelines for prudential norms for income recognition and asset
classification, KYC guidelines etc.
• NHB also inspects the HFCs through onsite and offsite surveillance.
• The Bank set up an online Grievance Registration and Information Database
System (GRIDS) to look into the grievances of customers against HFCs.

8. • Financing
• Refinance
• During the year 2017-18, aggregate refinance disbursements of ₹24,921 crore
were made with almost 53% disbursements being made to HFCs and 46% to
Scheduled Commercial Banks (SCBs).

9. • Project Finance
• Till June 30, 2018, NHB has financed 449 projects with project cost of
₹10,228 crore. The cumulative project finance disbursements stood at
₹2,406 crore

10. • Promotion & Development
• Encourages financial institutions to finance housing sector by refinancing their
lending.
• Setting up the Housing Finance Companies (HFCs).
• Participating in the equity of Housing Finance Companies.
• Impart training to banking section and HFCs for developing housing finance skills.
• Formulation of Housing Finance Index.

11. • Implementation of Government Schemes
• The NHB acts as a Central Nodal Agency (CNA) for the implementation of
the Government of India’s Schemes. The Schemes where NHB performs
this role include the following:
• Pradhan Mantri Awas Yojana (Urban) – Credit Linked Subsidy Scheme,
Ministry of Housing and Urban Affairs.
• Rural Housing Interest Subsidy Scheme (RHISS), Ministry of Rural
Development.

12. • Capacity Building
• The NHB regularly undertakes measures towards the training and capacity
building of various stakeholders in the sector.

13. • https://economictimes.indiatimes.com/industry/banking/finance/nhb-
orders-home-financiers-to-appoint-risk-officer/articleshow/69567668.cms
• https://economictimes.indiatimes.com/markets/stocks/news/nhb-
completes-inspection-of-dhfls-books/articleshow/68401523.cms
• https://www.thehindubusinessline.com/money-and-banking/in-nhb-
refinancing-bid-dhfl-may-seek-relief-from-keeping-51-of-its-assets-as-home-
loans/article28264370.ece

14. • https://www.business-standard.com/budget/article/budget-2019-govt-
hands-over-housing-finance-companies-to-rbi-from-nhb-
119070600074_1.html
• https://economictimes.indiatimes.com/markets/stocks/news/subramaniam
-swamis-letter-sends-indiabulls-housing-stock-
tumbling/articleshow/70427316.cms
• https://www.livemint.com/industry/banking/rbi-panel-suggests-setting-up-
of-new-entity-to-deepen-securitisation-market-1568033502511.html

15. THANK YOU