Mumbai: Reserve Bank has increased its shareholding in National Housing Bank by contributing Rs 1,000 crore towards the paid capital.
"The Reserve Bank has contributed Rs 1,000 crore towards the paid up capital of the National Housing Bank on January 12, 2016, thereby increasing its shareholding in the NHB from Rs 450 crore to Rs 1,450 crore," RBI said in a release today.
The move is aimed at facilitating NHB to expand financial operations given the demand for housing in the country. RBI had provided for an amount of Rs 1,000 crore during the accounting year 2014-15, specifically towards capital contribution to the NHB, which is its wholly owned subsidiary, it added.
"This would help NHB to expand its financial operations as envisaged under the NHB Act, 1987," RBI said further. Finance Ministry in December had notified an increase in authorised capital of NHB from Rs 450 crore to Rs 1,450 crore to enable RBI to augment its shareholding in NHB.
Set up in 1988, NHB is an apex level institution for housing, keeping in view the non-availability of long-term finance to individual households as a major lacuna impeding progress of housing sector in the country. Also, the government has set an ambitious target of 'Housing for All' by 2022.