Mumbai, Jan 15 (IANS) The Reserve Bank of India (RBI) on Friday announced it has increased shareholding in its wholly-owned subsidiary, the National Housing Bank (NHB), by contributing Rs.1,000 crore towards its paid-up capital.
“The Reserve Bank has contributed Rs.1,000 crore towards the paid up capital of the National Housing Bank on January 12, 2016, thereby increasing its shareholding in the NHB from Rs.450 crore to Rs.1,450 crore,” the RBI said in a release .
“This would help NHB to expand its financial operations as envisaged under the NHB Act, 1987,” it added.
The RBI had made a provision for the amount of Rs.1,000 crore towards capital contribution to the NHB during the accounting year 2014-15.
The finance ministry had in December notified an increase in authorised capital of NHB from Rs.450 crore to Rs.1,450 crore to enable the RBI to raise its shareholding in it.
The move is aimed to gear up the NHB to meet the country’s growing demand for housing, while the government has also set the target of “Housing for All” by 2022.