Govt To Infuse Rs 20,000 Cr More In HFCs

New Delhi: To provide additional liquidity in the market and help sales of residential property, government will infuse another Rs 20,000 in housing finance companies (HFCs), Finance Minister Niramala Sitharaman has said.

The national Housing Bank has already said recently that liquidity to the tune of Rs 10,000 crore would be infused in HFCs. With this additional support of Rs 20,000 crore, the overall liquidity support will each Rs 30,000 crore, said the minister.

While presenting steps that the government intends to take to boost the economy, Sitharaman said government has decided that partial credit guarantee scheme to obviate liquidity crisis in NBFCs that was announced in the Union Budget will be monitored closely in each bank.  The scheme is for buying pooled assets of NBFCs and HFCs up to the tune of Rs 1 lakh crore. The prepayment notices issued to NBFCs would also be monitored by banks.

The government will also take steps for co-origination of loans by public sector banks jointly with NBFCs, she said.