NHB notification asks housing finance companies to increase liquid assets

The National Housing Bank (NHB) has asked deposit-taking housing finance companies (HFCs) to slightly increase their liquid assets, stepping in as some sector players face a liquidity crisis.

The NHB, through a notification issued on May 25, has asked HFCs to keep 6.5 per cent of the public deposits in debt-free securities, instead of the 6-per cent limit earlier.

HFCs have to in keep 13 per cent as liquid assets--instead of 12.5 per cent earlier--with the remaining share of public deposits to be kept in the form of term deposits or certificate of deposits or in bonds issued by the