Home loan firms’ shares rise a day after RBI eases securitisation norms

Shares of home loan firms went up on Friday after the Reserve Bank of India eased norms for securitisation, which would help the companies raise more funds.On Thursday, RBI decided to relax the Minimum Holding Period (MHP) requirement for NBFCs, as they are now allowed to securitise loans of more than five-year maturity, after holding them for six months on their books, as compared with one year earlier.NBFCs involved in housing finance are the biggest beneficiary of the move, since such loans are extended for more than five years.“In our opinion, this should be beneficial largely to HFCs only, because they have loans of maturity [exceeding] five years ,” Motilal Oswal Securities said in a report. The report said Dewan Housing Finance and Indiabulls Housing Finance would be the big beneficiaries among HFCs, since they had a higher share of off-balancesheet assets, compared to peers and their reliance on sell-downs, as means of fund-raising has been greater in these times of tight liquidity.

Source : https://www.thehindu.com/todays-paper/tp-business/home-loan-firms-shares-rise-a-day-after-rbi-eases-securitisation-norms/article25638738.ece

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