Seeking issuance of tax-free bonds worth Rs 5,000 crore, the National Housing Bank (NHB) is planning to request the Union government in the next fiscal. NHB is the regulator for housing finance companies in the country.
NHB Chairman and Managing Director RV Verma said that the bank is in the process of preparing Budget demands for the next fiscal and will shortly submit its demands. In the last two years, a number of institutions were allowed to issue tax free bonds. They raised Rs 30,000 crore in 2011-12 and permitted to raise about Rs 25,000 crore in 2012-13.
The government allowed some institutions to issue tax free bonds up to a total sum of 50,000 crore during the current fiscal. Currently, NHB is in the process of raising about Rs 2,100 crore by issuing tax-free bonds.
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