NHB, HDFC seek clarity on how to use ECB funds

Housing finance companies (HFCs) and the National Housing Bank (NHB) will seek clarity from the Reserve Bank of India (RBI) on how to use funds raised through external commercial borrowing (ECB) till they get deployed in low-cost housing. On Monday, RBI had allowed realty developers and HFCs to raise ECB up to $1 billion during FY13 to develop low-cost property.

“We need to understand how to utilise the money,” said HDFC V-C and CEO Keki Mistry. Since only three months are left for this financial year to close, the NHB will write to RBI to extend the time to raise funds, said R V Verma, chairman and managing director of NHB, which plans to raise about $200 million via ECB this year.

The State Bank of India (SBI) said the demand for home loans this year has been better than last year. “We have sanctioned Rs 20,000 crore till now,” said R K Saraf, deputy managing director (corporate strategy and new business) of SBI.