In order to lend to low-cost housing projects, National Housing Bank (NHB) plans to raise $200 million through external commercial borrowing (ECB) in 2013-14.
The NHB plans to seek approval from the Reserve Bank of India (RBI) for raising the amount through ECB.
In 2012-13, the housing finance regulator could raise funds under ECB as the approval from RBI came in the latter part of the fiscal.
NHB plans to raise funds through ECB as it would diversify its resource base and generate confidence among international investors in the Indian housing finance
market.
It may be recalled that NHB is taking initiatives to boost financing for low-cost housing projects. As part of this efforts, the bank reduced refinance rates on loans up to Rs 5 lakh last year.
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