Shamrao Vithal Bk to offer reverse mortgage loans

Shamrao Vithal Co-operative Bank is planning to enter property reverse mortgage business, and is awaiting Reserve Bank of India (RBI) approval to acquire Bangalore-based Souharda Central Co-operative Bank.

Suresh Hemmady, chairman of Shamrao Bank, said: "As part of the bank's centenary, we like to introduce reverse mortgage business by December, but we do not want to rush before preparing ourselves."

"The bank has applied to the National Housing Bank, and is building skills in studying lifestyles of people in different regions and assessing properties in key states," he added.

The bank plans to launch it on a smaller scale, gain experience and then roll out the product in all the branches in Maharasthra, Karnataka and Goa.