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ectors
Mortgage Backed Security

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gage Loan

gage Loan

 India

 India

ts

ts

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ns

cies

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ousing

sidy Scheme

sidy Scheme

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Subvention Scheme
Yojana

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ee Rural Housing Finance Scheme

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ESIDEX
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t a Glance  
ects Data Graphs
 
h NHB
Delhi | Bangalore | Mumbai | Bhopa

/ e-News Table No.1

ss Releases
City Wise Index
tistics
City 2001 2002 2003 2004 2005 2006 2

of Returns Delhi 100 106 129 150 201 269 2

Bangalore 100 133 170 224 275 272 3

ate E-mail
Mumbai 100 116 132 149 178 224 2
s
Bhopal 100 120 136 154 179 192 2

Scheme for Kolkata 100 115 129 148 172 180 2

sing
Chart No.1
/Investor

it Schemes

Table No. 2

City wise Year-on-Year growth rate

City 2002 2003 2004 2005 2006 2007 Avg. Increas

Delhi 6.0 21.7 16.3 34.0 34.1 10.5 20.4

Bangalore 33.0 27.8 31.8 22.8 -1.0 14.9 21.6

Mumbai 15.8 14.0 13.1 19.3 25.6 20.0 18.0

Bhopal 20.0 13.3 13.5 15.9 7.4 35.0 17.5

Kolkata 15.0 12.3 14.6 16.2 4.7 31.7 15.7

Chart No. 2

Chart No. 3

 Disclaimers
  Acknowledgments

 
 
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00311689504460 FORID:10

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ectors

ectors
Mortgage Backed Security

Mortgage Backed Security

gage Loan

gage Loan

 India

 India

ts

ts

ns

ns

cies

cies

ousing

ousing

sidy Scheme
sidy Scheme

Subvention Scheme

Subvention Scheme

Yojana

Yojana

ee Rural Housing Finance Scheme

ee Rural Housing Finance Scheme

an

an

ousing in Rural Area

ousing in Rural Area

g Fund

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ESIDEX
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nks NHB Residex

t a Glance  
ects About Residex

h NHB  
Keeping in view the prominence of housing and real estate as a major area for creation of both p
financial assets and its contribution in overall National wealth, a need was felt for setting up of a m
/ e-News
which could track the movement of prices in the residential housing segment. Regular monitoring o
ss Releases prices can be useful inputs for the different interest groups.   Accordingly, National Housing B
tistics behest of the Ministry of Finance, undertook a pilot study to examine the feasibility of preparing su
at the National level. The pilot study covered 5 cities viz. Bangalore, Bhopal, Delhi, Kolkatta an
Besides, a Technical Advisory Group (TAG), with Adviser, Ministry of Finance, as its Chairman and
of Returns
of experts members form RBI, NSSO, CSO, Labour Bureau, NHB and other market players, was co
deal with all the issues relating to methodology, collection of data and also to guide the
ate E-mail construction of and appropriate index . Based on the results of the study and recommendations
s NHB launched RESIDEX for tracking prices of residential properties in India, in July 2007
Chidambram (then Hon’ble Finance Minister). Till now it has been updated up to June 2010.
Scheme for  
sing

/Investor

it Schemes

Shri P. Chidambaram (Hon’ble Finance Min

Launching of NHB RESIDEX on 10th July, 2007 Kumari Shailja ( Hon’ble  Ministe
Employment & Poverty Alleviation)
 
In order to guide and oversee the construction of NHB RESIDEX and extension of its coverage, to
the 63 cities under Jawaharlal Nehru National Urban Renewal Mission (JNNURM); a Standing Co
technical experts has been constituted under the Chairmanship of CMD, NHB with representation
Government of India, (Ministry of Finance, NSSO, CSO, Labour Bureau), RBI, and other promin
players.

At present, index is being developed only for residential housing sector. However, at a later stage
experience of constructing this index for a wider geographical spread, the scope of the inde
expanded to develop separate indices for commercial property and land, which could be combined
the real estate price index.
 
NHB RESIDEX: Salient Features

 Pilot study covered 5 cities viz. Delhi, Mumbai, Kolkata, Bangalore and Bhopal representing t
 regions of the country.
 Actual transactions prices considered for the study in order to arrive at an Index which will re
market trends.
 2001 was taken as the base year for the study to be comparable with the WPI and CPI.  Yea
price movement during the period 2001-2005 has been captured in the study, and subseque
updated for two more years i.e. up to 2007.
 NHB RESIDEX has been expanded to cover ten more cities, viz, Ahmedabad, Faridabad, Chen
Hyderabad, Jaipur, Patna, Lucknow, Pune and Surat.
 Further, with 2007 as base, NHB RESIDEX has been updated up to June, 2010 with quarterly
(April - June, 2010).
 At the time of last updation and expansion of coverage of NHB RESIDEX to 10 more cities, th
year has been shifted from 2001 to 2007.
 NHB RESIDEX will be up dated on quarterly basis from now onwards. This is the second quar
update of NHB RESIDEX.
 In the first phase NHB RESIDEX will be expanded to cover 35 cities having million plus popul
 The proposal is to expand NHB RESIDEX to 63 cities which are covered under the Jawahar La
National Urban Renewal Mission to make it a truly national index.
 Prices have been studied for various administrative zones/property tax zones constituting ea
 The index has been constructed using the weighted average methodology with Price Relative
(Modified Laspeyre’s approach). 
 Primary data on housing prices is being collected from real estate agents by commissioning 
services of private consultancy/research organisatons of national repute; in addition data on
prices is also being collected from the housing finance companies and bank, which is based o
loans contracted by these institutions.   

Way forward

At present, NHB RESIDEX has covered 15 cities in the first phase, it is proposed to cover 35 cities h
million plus population. The proposal is to expand NHB RESIDEX to 63 cities, which are covered und
Jawaharlal Nehru National Urban Renewal Mission (JNNURM), to make it a truly national index, in a
manner. It is envisaged to develop a residential property price index for select cities and subsequen
India composite index by suitably combining these city level indices to capture the relative tempora
the prices of houses at different levels.
 
 
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Regulation
 
In terms of the National Housing Bank Act, 1987, National Housing Bank is expected, in the
public interest, to regulate the housing finance system of the country to its advantage or to
prevent the affairs of any housing finance institution being conducted in a manner
detrimental to the interest of the depositors or in a manner prejudicial to the interest of the
housing finance institutions. For this, National Housing Bank has been empowered to
determine the policy and give directions to the housing finance institutions and their
auditors.

Besides the regulatory provisions of the National Housing Bank Act, 1987, National Housing
Bank has issued the Housing Finance Companies (NHB) Directions, 2001 as also Guidelines
for Asset Liability Management System in Housing Finance Companies. These are
periodically updated through issue of circulars and notifications.

As part of the supervisory process, an entry level regulation is sought to be achieved

through a system of registration of housing finance companies.

National Housing Bank supervises the sector through a system of on-site and off-site
surveillance.
 
National Housing Bank Act, 1987 379 kb 391 kb

Housing Finance Companies (NHB) 1,049 kb 895 kb

Directions, 2001

Housing Housing Finance Companies NHB SchedulesTo SchedulesTo

Direction 2010 – Updated
HFC.DIR.1 HFC.DIR.1
HFC_NHB_DIR2010 HFC_NHB_DIR2010
with corrg with corrg

Notifications  

Circulars  

Guidelines  

Application for Certificate of Registration 89 kb 41 kb

Inspection Forms 989 kb 2382 kb

 List of Companies  
 
   
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Regulation
NATIONAL HOUSING BANK

New Delhi, the 10th June, 2010

The Housing Finance Companies (NHB) Directions, 2010*

(*Published in the Gazette of India, Part -III Section 4 Dated. June 26 - July 2, 2010 )

Notification No. NHB.HFC.DIR.1/CMD/2010

CHAPTER I - PRELIMINARY
CHAPTER II - ACCEPTANCE OF PUBLIC DEPOSITS
CHAPTER III - PRUDENTIAL NORMS
CHAPTER IV - DIRECTIONS TO AUDITORS
CHAPTER V - MISCELLANEOUS
SCHEDULE I
SCHEDULE II
SCHEDULE III
Whereas the National Housing Bank had issued Housing Finance Companies (NHB) Directions, 2001 in
respect of matters relating to acceptance of deposits by housing finance companies, prudential norms for
income recognition, accounting standards, asset classification, provision for bad and doubtful assets, capital
adequacy and concentration of credit/ investments to be observed by the housing finance companies and
matters to be included in the Auditors Report by the auditors of such housing finance companies and matters
ancillary and incidental thereto and amended the said Directions from time to time

2. And whereas it is considered desirable to issue consolidated Directions incorporating the amendments
made from time to time.

3. Now therefore, the National Housing Bank having considered it necessary in the public interest and being
satisfied that for the purpose of enabling the National Housing Bank to regulate the housing finance system
of the country to its advantage, it is necessary to give the Directions mentioned below, hereby in exercise of
the powers conferred, by sections 30, 30A, 31 and 33 of the National Housing Bank Act, 1987 ( 53 of 1987)
and of all the powers enabling it in this behalf, and in supercession of the aforementioned directions gives
the Directions hereinafter specified.
CHAPTER I - PRELIMINARY

Short Short title, commencement and applicability of the Directions

1. (1) These Directions shall be known as the Housing Finance Companies (NHB) Directions, 2010. They
shall come into force from the date of publication in the Official Gazette and any reference in these
Directions to the date of commencement thereof shall be deemed to be a reference to that date.

(2) Unless otherwise directed by the National Housing Bank, these Directions except the Directions contained
in Chapter IV shall be applicable to every housing finance company registered under section 29A of the
National Housing Bank Act, 1987 (53 of 1987). Directions contained in Chapter IV shall be applicable to
every auditor of a housing finance company.

Definitions

2. (1) In these Directions, unless the context otherwise requires,

(a)“banking company” means a banking company as defined in Section 5(c) of the Banking Regulation Act,
1949 (10 of 1949);

(b) “breakup value” means the equity capital and reserves as reduced by intangible assets and revaluation
reserves, divided by the number of equity shares of the investee company;

(c)“carrying cost” means book value of the assets and interest accrued thereon but not received;

(d) “company” means a company as defined in Section 45 I (aa) of the Reserve Bank of India Act, 1934 (2
of 1934) but does not include a company which is being wound up under any law for the time being in force;

(e)"control" shall have the same meaning as is assigned to it under clause (c) of sub-regulation (1) of
regulation 2 of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997.

(f) “current investment” means an investment which is by its nature readily realisable and is intended to be
held for not more than one year from the date on which such investment is made;

(g) “deposit” shall have the same meaning as assigned to it in Section 45 I (bb) of the Reserve Bank of India
Act, 1934 (2 of 1934);

(h)“depositor” means any person who has made a deposit with the housing finance company or a heir, legal
representative, administrator or assignee of the depositor;
(i) “doubtful asset” means a term loan, or a leased asset, or a hire purchase asset, or any other asset, which
remains a substandard asset for a period exceeding two years; Provided that with effect from March 31,
2005, “doubtful asset” shall mean a term loan, or a leased asset, or a hire purchase asset, or any other
asset, which remains a sub-standard asset for a period exceeding twelve months;

(j) “earning value” means the value of an equity share computed by the average of profits after tax as
reduced by the preference dividend and adjusted for extra ordinary and non recurring items, for the
immediately preceding three years and further divided by the number of equity shares of the investee
company and capitalised at the following rate:-

(i)in case of predominantly manufacturing company, eight percent;

(ii)in case of predominantly trading company, ten percent; and

(iii)in case of any other company, including a Housing Finance Company, twelve percent;

Note:

If an investee company is a loss making company, the earning value will be taken as zero;

(k) “ fair value” means the mean of the earning value and the breakup value;

(l) “free reserves” shall include the balance in the share premium account, capital and debenture redemption
reserves and any other reserve shown or published in the balance sheet of the company and created through
an allocation of profits, not being (1) a reserve created for repayment of any future liability or for
depreciation in assets or for bad debt or (2) a reserve created by revaluation of the assets of the company;

(m) “housing finance company” means a company incorporated under the Companies Act, 1956 (1 of 1956)
which primarily transacts or has as one of its principal objects, the transacting of the business of providing
finance for housing, whether directly or indirectly;

(n) “hybrid debt” means capital instrument which possesses certain characteristics of equity as well as of
debt;

(o) “Innovative perpetual debt” means hybrid debt issued in accordance with the terms and conditions
stipulated in the Circular issued by National Housing Bank in this regard.

(p)“lending public financial institution” means -

(i) a public financial institution specified in or under section 4A of the Companies Act, 1956 (1 of 1956); or

(ii)a State Financial Corporation or a State Industrial Investment Corporation; or

(iii)a scheduled commercial bank; or

(iv)the General Insurance Corporation of India established in pursuance of the provisions of section 9 of the
General Insurance Business (Nationalisation) Act, 1972 (57 of 1972); or

(v)any other Institution which the National Housing Bank may, by notification, specify in this behalf;

(q) “long term investment” means an investment other than a current investment;

(r) “loss asset” means -

(i)an asset which has been identified as loss asset by the housing finance company or its internal or external
auditor or by the National Housing Bank, to the extent it is not written off by the housing finance company;
and

(ii)an asset which is adversely affected by a potential threat of non recoverability due to any one of the
following, namely:-

(a)  non-availability of security, either primary or collateral, in case of secured loans and advances;

(b)  erosion in value of security, either primary or collateral, is established;;

(c)  insurance claim, if any, has been denied or settled in part;

(d)  fraudulent act or omission on the part of the borrower;

(e)  the debt becoming time barred under Limitation Act, 1963 (36 of 1963);

(f)  inchoate or defective documentation.

Explanation -FFor the removal of doubt, it is clarified that mere right of the housing finance company to file
suit against the borrower/guarantor for recovery of dues does not debar the National Housing Bank or the
auditors to consider the asset or part thereof as loss asset due to aforesaid reasons;

(s) “net asset value” means the latest declared net asset value by the concerned mutual fund in respect of
that particular scheme;

(t) “net book value” means -

(i)in the case of hire purchase asset, the aggregate of overdue and future installments receivable as reduced
by the balance of the unmatured finance charges and further reduced by the provisions made as per
paragraph 24(2)(i) of these directions;
(ii)in the case of leased assets, aggregate of capital portion of overdue lease rentals accounted as receivable
and depreciated book value of the lease asset as adjusted by the balance of lease adjustment account;

(u) “net owned fund” means net owned fund as defined under section 29A of the National Housing Bank Act,
1987 including paid up preference shares which are compulsorily convertible into equity capital.

(v)“non-performing asset” (referred to in these directions as “NPA”) means:-

(i)a loan asset, in respect of which, interest has remained past due for six months;

(ii)a term loan (other than the one granted to an agriculturist or to a person whose income is dependent on
the harvest of crops) inclusive of unpaid interest, when the installment is overdue for more than six months
or on which interest amount remained past due for six months;

(iii)a bill of exchange which remains over due for six months;

(iv)the interest in respect of a debt or the income on a receivable under the head ‘other current assets’ in
the nature of short term loans/advances, which facility remained over due for a period of six months;

(v)any dues on account of sale of assets or services rendered or reimbursement of expenses incurred, which
remained over due for a period of six months;

(vi)the lease rental and hire purchase installment, which has become over due for a period of more than
twelve months;

(vii)an inter corporate deposit, in respect of which interest or principal has remained over due for a period of
six months;

Provided that with effect from March 31, 2005, “non-performing asset” shall mean:-

(i)   an asset, in respect of which, interest has remained overdue for a period of ninety days or more;

(ii)   a term loan (other than the one granted to an agriculturist or to a person whose income is dependent
on the harvest of crops) inclusive of unpaid interest, when the installment is overdue for a period of ninety
days or more or on which interest amount remained overdue for a period of ninety days or more;

(iii)   a demand or call loan, which remained overdue for a period of ninety days or more from the date of
demand or call or on which interest amount remained overdue for a period of ninety days or more;

(iv)   a bill which remains overdue for a period of ninety days or more;

(v)    the interest in respect of a debt or the income on receivables under the head ‘other current assets’ in
the nature of short term loans/advances, which facility remained overdue for a period of ninety days or
more;

(vi)    any dues on account of sale of assets or services rendered or reimbursement of expenses incurred,
which remained over due for a period of ninety days or more;

(vii)   the lease rental and hire purchase installment, which has become over due for a period of ninety days
or more;

(viii)    an inter corporate deposit, in respect of which interest or principal has remained overdue for a period
of ninety days or more.

(ix)a term loan granted to an agriculturist or to a person whose income is dependent on the harvest of crops
if the installment of principal or interest thereon remains unpaid:

(a)for two crop seasons beyond the due date if the income of the borrower is dependent on short duration
crops, or

(b)for one crop season beyond the due date if the income of the borrower is dependent on long duration
crop.

Explanation

(1)For the purpose of this sub-clause “long duration” crops would be crops with crop season longer than one
year and crops, which are not “long duration” crops, would be treated as “short duration” crops.

(2)The crop season for each crop means the period up to harvesting of the crops raised, would be as
determined by the State Level Bankers’ Committee in each State.

(w) “owned fund” means paid up capital including preference shares compulsorily convertible into equity
shares, free reserves, balance in share premium account and capital reserves representing surplus arising
out of sale proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated
loss balance, book value of intangible assets and deferred revenue expenditure, if any;

(x) “past due” means an amount of income or interest which remains unpaid for a period of thirty days
beyond the due date;

(y) “public deposit” means a deposit but does not include the following, namely:-

(i) any amount received from the Central Government or a State Government or any amount received from
any other source and whose repayment is guaranteed by the Central Government or a State Government or
any amount received from a local authority or any public housing agency, or a foreign Government or any
other foreign citizen, authority or person;
(ii)any amount received from the National Housing Bank, established under the National Housing Bank Act,
1987 (53 of 1987), or the Industrial Development Bank of India established under the Industrial
Development Bank of India Act, 1964 (18 of 1964) or the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Corporation of India
and its subsidiaries established in pursuance of the provisions of section 9 of the General Insurance Business
(Nationalisation) Act, 1972 (57 of 1972) or the Small Industries Development Bank of India established
under the Small Industries Development Bank of India Act, 1989 (39 of 1989) or the Unit Trust of India
established under the Unit Trust of India Act, 1963 (52 of 1963) or National Bank for Agriculture and Rural
Development established under the National Bank for Agriculture and Rural Development Act, 1982 or an
Electricity Board constituted under the Electricity (Supply) Act, 1948 or the Tamil Nadu Industrial Investment
Corporation Ltd., or the National Industrial Development Corporation of India Ltd., or the Industrial Credit &
Investment Corporation of India Ltd., or the Industrial Finance Corporation of India Ltd., or the Industrial
Investment Bank of India Ltd., or State Trading Corporation of India Ltd., or the Rural Electrification
Corporation Ltd., or the Minerals and Metals Trading Corporation of India Ltd., or the Agricultural Finance
Corporation Ltd., or the State Industrial and Investment Corporation of Maharashtra Ltd., or the Gujarat
Industrial Investment Corporation Ltd.,or Asian Development Bank or International Finance Corporation or
the Overseas Economic Cooperation Fund (OECF) or Kreditanstalt für Wiederaufbau (KfW) or any other
institution that may be specified by the National Housing Bank in this behalf;

(iii)any amount received by a housing finance company from another company;

(iv)any amount received by way of subscription to any share, stock, bonds or debentures pending the
allotment of the said shares, stock, bonds or debentures and any amount received by way of calls in
advance on shares, in accordance with the Articles of Association of the housing finance company so long as
such amount is not repayable to the members under the Articles of Association of the housing finance
company;

(v)any amount received from a person who at the time of receipt of the amount was a Director of the
housing finance company or any amount received from its shareholders by a private housing finance
company or by a private housing finance company which has become a public housing finance company
under section 43A of the Companies Act, 1956 and continues to include in its Articles of Association
provisions relating to the matters specified in clause (iii) of sub-section (1) of section 3 of the Companies
Act, 1956 (1 of 1956):

Provided that the Director or shareholder, as the case may be, from whom the money is received furnishes
to the housing finance company at the time of giving the money, a declaration in writing to the effect that
the amount is not being given out of funds acquired by him by borrowing or accepting from others;

Provided further that in the case of joint shareholders of a private limited company, money received from or
in the name of the joint shareholders except the first named shareholder shall not be eligible to be treated
as the receipt of money from the shareholder of the company;
(vi)any amount raised by the issue of bonds or debentures secured by the mortgage of any immovable
property of the housing finance company; or by any other asset or with an option to convert them into
shares in the housing finance company provided that in the case of such bonds or debentures secured by
mortgage of any immovable property or secured by other assets, the amount of such bonds or debentures
shall not exceed the market value of such immovable property/ other assets;

(vii)any amount brought in by the promoters by way of unsecured loan in pursuance of stipulations of
lending institutions subject to the fulfillment of the following conditions, namely :-

(a)the loan is brought in pursuance of the stipulation imposed by the lending public financial institution in
fulfillment of the obligation of the promoters to contribute such finance,

(b)the loan is provided by the promoters themselves and/or by their relatives, and not from their friends and
business associates, and

(c)the exemption under this sub-clause shall be available only till the loan of the lending public financial
institution is repaid and not thereafter;

(viii)any amount received from a mutual fund which is governed by the Securities and Exchange Board of
India (Mutual Funds) Regulations, 1996;

(ix)any amount received as hybrid debt or subordinated debt the minimum maturity period of which is not
less than sixty months;

(x)any amount received from a relative of a director of a housing finance company;

Note:The deposit shall be accepted only on an application made by the depositor containing therein a
declaration that as on the date of deposit, he is related to the specific director in the capacity of a relative as
defined under Companies Act, 1956 (1 of 1956);

(z) “public housing agency” shall include any authority, constituted in India by or under any law, engaged
either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose
of planning, development or improvement of cities, towns and villages or for both.

(za) “securities” means securities as defined in section 2(h) of the Securities Contracts (Regulation) Act,
1956 (42 of 1956);

(zb) “standard asset” means the asset in respect of which, no default in repayment of principal or payment
of interest is perceived and which does not disclose any problem nor carry more than normal risk attached to
the business;

(zc) “sub-standard asset” means -

(i)an asset, which has been classified as non-performing asset for a period not exceeding two years;
Provided that with effect from March 31, 2005, an asset, which has been classified as non-performing asset
for a period not exceeding twelve months shall be a sub-standard asset;

(ii) an asset, where the terms of the agreement regarding interest and/or principal have been re-negotiated
or rescheduled after release of any instalment of loan or an inter-corporate deposit which has been rolled
over, until the expiry of one year of satisfactory performance under the re-negotiated or rescheduled terms:
Provided that where a delay in completion of a project is caused on account of factors beyond the control of
the project implementing agency, terms of the loan agreement regarding interest and/ or principal may be
rescheduled once before the completion of the project and such loans may be treated as standard asset,
subject to the condition that such reschedulement shall be permitted only once by the Board of Directors of
the concerned housing finance company and that interest on such loan is paid regularly and there is no
default;
Provided further that where natural calamities impair the repaying capacity of a borrower, terms of the loan
agreement regarding interest and/ or principal may be rescheduled and such loans shall not be classified as
sub-standard; the classification of such loans would thereafter be governed by the revised terms and
conditions;

(zd)“subordinated debt” means a fully paid up capital instrument, which is unsecured and is subordinated to
the claims of other creditors and is free from restrictive clauses and is not redeemable at the instance of the
holder or without the consent of the supervisory authority of the housing finance company. The book value
of such instrument shall be subjected to discounting as provided hereunder:

Rate of discount (%)

Remaining maturity of the instruments
(i) up to one year 100
(ii) More than one year but upto two years 80
(iii) More than two years but upto three years 60
(iv) More than three years but upto four years 40
(v) More than four years but upto five years 20
to the extent such discounted value does not exceed fifty percent of the Tier-I capital;

(ze)“substantial interest” means holding of a beneficial interest by an individual or his spouse or minor child,
whether singly or taken together in the shares of a company, the amount paid up on which exceeds ten
percent of the paid up capital of the company; or the capital subscribed by all the partners of a partnership
firm;

(zf) “tier-I capital” means owned fund as reduced by investment in shares of other housing finance
companies and in shares, debenture, bonds, outstanding loans and advances including hire purchase and
lease finance made to and deposits with subsidiaries and companies in the same group exceeding, in
aggregate, ten percent of the owned fund;
(zg)“tier-II capital” includes the following:-

(i)preference shares (other than those compulsorily convertible into equity);

(ii)revaluation reserves at discounted rate of fifty five percent;

general provisions and loss reserves to the extent these are not attributable to actual diminution in value or
identifiable potential loss in any specific asset and are available to meet unexpected losses to the extent of
one and one fourth percent of risk weighted assets;

(iv)hybrid debt;

(v)subordinated debt

to the extent the aggregate does not exceed Tier-I capital; and

(zh) ‘Tiny deposit’ means the aggregate amount of public deposits not exceeding Rs. 10,000/- standing in
the name of the sole or the first named depositor in the same capacity in all the branches of the housing
finance company.

(2)Words or expressions used but not defined herein and defined in the National Housing Bank Act, 1987
shall have the same meaning as assigned to them therein. Any other words or expressions not defined
herein or in the National Housing Bank Act, 1987 shall have the same meaning as assigned to them in the
Reserve Bank of India Act, 1934 (2 of 1934), Banking Regulation Act, 1949 (10 of 1949) and the Companies
Act, 1956 (1 of 1956);

(3)(a) If any question arises as to whether a company is a financial institution or not, such question shall be
decided by the National Housing Bank in consultation with the Central Government.

(b) If any question arises as to whether a company is a housing finance company, the same shall be decided
by the National Housing Bank.

CHAPTER II - ACCEPTANCE OF PUBLIC DEPOSITS

Restriction on acceptance of deposits

3 . (1)No housing finance company shall accept or renew public deposits unless the housing finance
company has obtained minimum investment grade rating for its fixed deposits from any one of the approved
rating agencies, at least once a year and a copy of the rating is sent to the National Housing Bank and it is
complying with all the prudential norms, provided that:
(i) a housing finance company having obtained credit rating for its fixed deposits not below the minimum
investment grade rating as above and complying with all the prudential norms, may accept public deposits
not exceeding five times of its NOF.

(ii) a housing finance company which does not have the requisite rating for its fixed deposits shall obtain the
same within a period of six months time from the date of notification or such extended period as may be
permitted by the National Housing Bank, to obtain the prescribed rating for its fixed deposits.

Approved Credit Rating Agencies

The names of approved credit rating agencies for the time being are as follows:-

(a) The Credit Rating Information Services of India Ltd. (CRISIL)

(b) ICRA Ltd.

(c) Credit Analysis & Research Ltd.(CARE)

(d) FITCH Ratings India Private Ltd.

(2)NNo housing finance company shall have deposits inclusive of public deposits, the aggregate amount of
which together with the amounts, if any, held by it which are referred in clauses (iii) to (vii) of sub-section
(bb) of Section 45 I of the Reserve Bank of India Act, 1934 (2 of 1934) as also loans or other assistance
from the National Housing Bank, is in excess of sixteen times of its NOF.

(3) Where a housing finance company holds as on the date of commencement of these directions public
deposits in excess of the limits specified in (1) above and as applicable to it or deposits inclusive of the items
mentioned in (2) above in excess of the limits specified in

(2) above, it shall -

(i)not accept fresh deposit or open new deposit account; or

(ii) not renew the existing deposit or where the deposits are received under any recurring scheme, receive
installments under such scheme after the expiry of the scheme period;

(iii)reduce such excess deposit by repayment on maturity.

(4) In the event of down gradation of the credit rating to any level below investment grade, the housing
finance company shall

(i) report the position within fifteen working days to the National Housing Bank;
(ii) with immediate effect stop accepting fresh public deposit and

(iii) reduce such excess deposit by repayment on maturity..

Period of deposits

4. No housing finance company shall accept or renew any public deposit:

(a)which is repayable on demand or on notice; or

(b) unless such deposit is repayable after a period of twelve months or more but not later than eighty four
months from the date of acceptance or renewal of such deposits.

Explanation

Where a public deposit is in Instalments, the period of such deposit shall be computed from the date of
receipt of first Installment.

Joint deposits

5. Where so desired, deposits may be accepted in joint names with or without any of the clauses, namely,
“Either or Survivor”, “Number One or Survivor/s”, “Anyone or Survivor/s”.

Particulars to be specified in application form soliciting public deposits

6 (i)No housing finance company shall accept or renew any public deposit except on a written application
from the depositors in the form to be supplied by the housing finance company, which form shall contain all
the particulars specified in the Non-Banking Financial Companies and Miscellaneous Non-Banking Companies
(Advertisement) Rules, 1977, made under section 58A of the Companies Act, 1956 (1 of 1956) and also
contain the particulars of the specific category of the depositors, i.e. whether the depositor is a shareholder
or a director or a promoter of the housing finance company or a member of public or a relative of a director
of the company.

(ii)The application form shall also contain the following:-

(a)the credit rating assigned for its deposits and the name of the credit rating agency which rated the
housing finance company;

(b)a statement to the effect that in case of any deficiency of the housing finance company in servicing its
deposits, the depositor may approach the National Consumers Disputes Redressal Forum, the State Level
Consumers Disputes Redressal Forum or the District Level Consumers Dispute Redressal Forum for relief;

(c)a statement to the effect that in case of non-repayment of the deposit or part thereof in accordance with
the terms and conditions of the deposit, the depositor may make an application to authorised officer of the
National Housing Bank;

(d)a statement to the effect that the financial position of the housing finance company as disclosed and the
representations made in the application form are true and correct and that the housing finance company and
its Board of Directors are responsible for the correctness and veracity thereof;

(e)a statement to the effect that the housing finance company is within the regulatory framework of the
National Housing Bank. It must, however, be distinctly understood that the National Housing Bank does not
undertake any responsibility for the financial soundness of the housing finance company or for the
correctness of any of the statements or the representations made or opinions expressed by the housing
finance company; and for repayment of deposit/ discharge of liabilities by the housing finance company;

(f)the information relating to and the aggregate dues from the facilities, both fund and non-fund based,
extended to, and the aggregate dues from companies in the same group or other entities or business
ventures in which the directors and/or the housing finance company are/is holding substantial interest and
the total amount of exposure to such entities;

(g)at the end of application form but before signature of the depositor, the following verification clause by
the depositor shall be appended. “I have gone through the financial and other statements/
particulars/representations furnished/ made by the housing finance company and after careful consideration
I am making the deposit with the housing finance company at my own risk and volition.

Introduction of depositors

7. Every housing finance company shall obtain proper introduction of new depositors before opening their
accounts and accepting the deposits, and shall keep on its record the evidence on which it has relied for the
purpose of such introduction.

Explanation :

For the purpose of this paragraph, introduction shall mean identification of the prospective depositor and
may be done either by one of the existing depositors or on the basis of any one of Income Tax Permanent
Account Number (PAN), Election Identity Card, Passport, or Ration Card.

Furnishing of receipts to depositors

8. (1) Every housing finance company shall furnish to every depositor or his agent, unless, it has done so
already, a receipt for every amount which has been or which may be received by the housing finance
company by way of deposit before or after the date of commencement of these Directions.

(2)The said receipt should be duly signed by an officer entitled to act for the housing finance company in this
behalf and shall state the date of deposit, the name of depositor, the amount in words and figures received
by the housing finance company by way of deposit, rate of interest payable thereon and the date on which
the deposit is repayable.

Provided that, if such receipts pertain to Installments subsequent to the first installment of a recurring
deposit it may contain only name of the depositor/s, date and amount of deposit.

Register of deposits

9. (1)Every housing finance company shall keep one or more registers in which shall be entered separately
in the case of each depositor or group of joint depositors the following particulars, namely,

(a)name and address of the depositor or group of joint depositors, their nominees,

(b) date and amount of each deposit,

(c) duration and due date of each deposit,

(d)date and amount of accrued interest or premium on each deposit,

(e)date and amount of each repayment, whether of principal, interest or premium,

(f)date of claim made by the depositor,

(g)the reasons for delay in repayment beyond five working days, and

(h)any other particulars relating to the deposits.

(2)The register or registers aforesaid shall be kept at each branch in respect of the deposit accounts opened
by that branch of the housing finance company and a consolidated register for all the branches taken
together at the registered office of the housing finance company and shall be preserved in good order for a
period of not less than eight years following the financial year in which the latest entry is made of the
repayment or renewal of any deposit of which particulars are contained in the register:

Provided that, if the housing finance company keeps the books of account referred to in sub-section (1) of
Section 209 of the Companies Act, 1956 (1 of 1956) at any place other than its Registered Office in
accordance with the provisions to that sub-section, it shall be sufficient compliance with this sub-paragraph
if the register aforesaid is kept at such other place, subject to the condition that the housing finance
company delivers to the National Housing Bank a copy of the notice filed with the Registrar under the
proviso to the said sub-section within seven days of such filing.
Information to be included in the Board’s Report

10. (1)In every report of the Board of Directors laid before the housing finance company in a general
meeting under sub-section (1) of Section 217 of the companies Act, 1956 (1 of 1956) after the date of
commencement of these Directions there shall be included, the following particulars or information, namely:

(a) the total number of accounts of public deposit of the housing finance company which have not been
claimed by the depositors or not paid by the housing finance company after the date on which the deposit
became due for re-payment; and

(b)the total amounts due under such accounts remaining unclaimed or unpaid beyond the dates referred to
in clause (a) as aforesaid.

(2)The said particulars or information shall be furnished with reference to the position as on the last date of
the financial year to which the report relates and if the amounts remaining unclaimed or undisbursed as
referred to in clause (b) of the preceding sub-paragraph exceed in the aggregate the sum of rupees five
lakhs, there shall also be included in the report a statement on the steps taken or proposed to be taken by
the Board of Directors for the repayment of the amounts due to the depositors or group of joint depositors
and remaining unclaimed or undisbursed.

Ceiling on the rate of interest and brokerage and interest on overdue public deposits

11. 1(a) On and from 6th July, 2007 no housing finance company shall invite or accept or renew any public
deposit at a rate of interest exceeding twelve and half per cent per annum such interest being payable or
compounded at rests which should not be shorter than monthly rests.

1(b)On and from 20th September 2003, no housing finance company shall invite or accept or renew
repatriable deposits from non-resident Indians in terms of Notification No. FEMA.5/2000-RB dated May 03,
2000 under Non-Resident (External) Account Scheme at a rate exceeding the rates specified by the Reserve
Bank of India for such deposits with scheduled commercial banks.

Explanation:The period of deposits shall not be less than one year and not more than three years.

(c)No housing finance company shall pay to any broker on public deposit collected by or through him

(i) brokerage, commission, incentive or any other benefit by whatever name called in excess of two per cent
of the deposit so collected;

(ii)expenses by way of reimbursement on the basis or relative vouchers/bills produced by him, in excess of
0.5% of the deposit so collected.
 

(2) Payment of interest on overdue deposit

A housing finance company may, at its discretion, allow interest on an overdue public deposit or a portion of
the said overdue deposit from the date of maturity of the deposit subject to the conditions that -

(i)the total amount of overdue deposit or the part thereof is renewed in accordance with other relevant
provisions of these Directions, from the date of its maturity till some future date, and

(ii)the interest allowed shall be at the appropriate rate operative on the date of maturity of such overdue
deposit which shall be payable only on the amount of deposit so renewed:

Provided that where a housing finance company fails to repay the deposit along with interest on maturity on
the claim made by the depositor, the housing finance company shall pay interest from the date of claim till
the date of repayment at the rate as applicable to the deposit.

General provisions regarding repayment of deposits

12. (i)No housing finance company shall repay any public deposit within a period of three months from the
date of its acceptance.

(ii)Where a housing finance company at the request of depositor/s repays a public deposit after the period
indicated in clause (i) above but before its maturity, it shall pay interest at the following rate:

three months
(a) minimum lock in period
(b) after three months but before six months no interest
(c) After six months but before the date of The interest payable shall be two percent lower
maturity. than the interest rate applicable to a public
deposit for the period for which the deposit has
run or if no rate has been specified for that
period, then three percent lower than the
minimum rate at which the public deposits are
accepted by that Housing Finance Company.
 

(iii)A housing finance company may grant a loan up to seventy-five percent of the amount of public deposit
to a depositor after the expiry of three months from the date of public deposit at a rate of interest two
percentage points above the interest rate payable on the public deposit.

(iv)It is obligatory on the part of a housing finance company to intimate the details of maturity of the deposit
to the depositor at least two months before the date of maturity of the deposit..

(v)all deposit accounts standing to the credit of sole/first named depositor in the same capacity shall be
clubbed and treated as one deposit account for the purpose of premature repayment.

(vi)Provided that in the event of death of a depositor, the public deposit may be paid prematurely to the
surviving depositor/s in the case of joint holding with the survivor clause, or to the nominee or legal heir/s
with interest at the contracted rate up to the date of repayment.

(vii)For the purpose, housing finance companies are classified into two categories viz. a problem housing
finance company and a normally run housing finance company. A housing finance company, which is
normally run housing finance company, with effect from the date of this notification, can permit premature
repayment of a public deposit after the lock-in period at its sole discretion only and premature closure
cannot be claimed as a matter of right by the depositors. The problem housing finance companies have been
prohibited from making premature repayment of any public deposits or granting any loan against public
deposits except in the case of death of the depositor or in the case of tiny deposit up to Rs.10,000/- in
entirety or to enable the depositor to meet expenses of an emergent nature up to an amount not exceeding
Rs.10,000/-.

A problem housing finance company is one which:

(i) has refused or failed to meet within five working days any lawful demand for repayment of the matured
public deposits; or

(ii) intimates the Company Law Board under section 58AA of the Companies Act, 1956, about its default to a
small depositor in repayment of any public deposit or part thereof or any interest thereupon; or

(iii) approaches the Bank for withdrawal of the liquid asset securities to meet its deposit obligations; or

(iv) approaches the Bank for any relief or relaxation or exemption from the provisions of these directions for
avoiding default in meeting public deposit or other obligations; or
has been identified by the National Housing Bank to be a problem housing finance company either suo moto
or based on the complaints from the depositors about non-repayment of public deposits or on complaints
from the company’s lenders about non-payment of dues.
Renewal of public deposit before maturity

13. Where any housing finance company permits an existing depositor to renew his public deposit before
maturity for availing the benefit of higher rate of interest, such company shall pay the depositor the increase
in the rate of interest provided,

(i)the public deposit is renewed in accordance with the other provisions of these directions and for a period
longer than the remaining period of the original contract; and

(ii)the interest on the expired period of the public deposit is reduced by one percentage point from the rate
at which the housing finance company would have ordinarily paid, had the deposit been accepted for the
period for which such public deposit had run; any interest paid earlier in excess of such reduced rate is
recovered/adjusted.

Safe custody of approved securities

14. (1)Every housing finance company shall entrust to one of the scheduled commercial banks designated
by it on that behalf, in the place where the registered office of the housing finance company is situated, the
unencumbered approved securities required to be maintained by it in pursuance of Section 29B of the
National Housing Bank Act, 1987;

Provided that where a housing finance company intends to entrust these securities to the Stock Holding
Corporation of India Ltd. or to its designated bankers at a place other than the place at which its registered
office is situated or to keep them in the form of Constituent’s Subsidiary General Ledger Account with a
schedule commercial bank, or with a depository participant registered with Securities and Exchange Board of
India established under Securities and Exchange Board of India Act, 1992 (15 of 1992), it shall obtain the
prior approval in writing, of the National Housing Bank.

(2) the securities mentioned in sub-paragraph (1) above shall continue to be entrusted to such designated
banker or to the Stock Holding Corporation of India Ltd. or the depository participant or held in the
constituent’s subsidiary General Ledger Account with the scheduled commercial bank for the benefit of the
depositors and shall not be withdrawn or encashed or otherwise dealt with by the housing finance company
except for repayment to the depositors.

Provided that,

(1)a housing finance company shall be entitled to withdraw a portion of such securities proportionate to the
reduction of its deposits duly certified to that effect by its auditors;

(2)where the housing finance company intends to substitute such securities, it may do so by entrusting
substitute securities of equal value to the designated bank before such withdrawal.
Explanation

‘scheduled commercial bank’ means a bank included in the Second Schedule to the Reserve Bank of India
Act, 1934 (2 of 1934) excluding a Regional Rural Bank or a Co-operative Bank.

Creation of Floating Charge in favour of the Depositors

15. . All Housing Finance Companies accepting/holding public deposits shall create floating charge on the
assets invested by them in terms of sub-sections (1) and (2) of Section 29B of the National Housing Bank
Act, 1987 in favour of their depositors in a manner as may be prescribed by National Housing Bank from
time to time, in this behalf.

Employee Security Deposit

16. A housing finance company receiving any amount in the ordinary course of its business as security
deposit from any of its employees for due performance of his duties shall keep such amount in an account
with a scheduled commercial bank or in a post office in the joint names of the employee and the housing
finance company on the conditions that -

(1)it shall not withdraw the amount without the consent in writing of the employee; and

(2)the amount shall be repayable to the employee along with interest payable on such deposit account
unless such amount or any part thereof is liable to be appropriated by the housing finance company for the
failure on the part of the employee for due performance of his duties.

Advertisement and statement in lieu of advertisement

17. (1)Every housing finance company soliciting public deposits shall comply with the provisions of the Non-
Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 and
shall also specify in every advertisement to be issued thereunder, the following :

(a)the actual rate of return by way of interest, premium, bonus or other advantage to the depositors;

(b)the mode of payment to the depositors;

(c) maturity period of deposits;

(d)the interest payable on a specified deposit;

(e)the rate of interest which will be payable to the depositors in case the depositor withdraws the deposit
prematurely;

(f)the terms and conditions subject to which a deposit will be renewed;

(g) any other special features relating to the terms and conditions subject to which the deposits are
accepted/ renewed; and

(h)the information, relating to the aggregate dues (including the non-fund based facilities) provided to/ from
companies in the same group or other entities or business ventures in which the directors and/ or the
housing finance company are holding substantial interest and the total amount of exposure to such entities.

(2)Where a housing finance company intends to accept public deposits without inviting or allowing or
causing any other person to invite such deposits, it shall, before accepting deposits, deliver to the office of
the National Housing Bank at New Delhi for registration, a statement in lieu of advertisement containing all
the particulars required to be included in the advertisement pursuant to the Non-Banking Financial
Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 as also the particulars
stated in sub-paragraph (1) hereinabove, duly signed in the manner provided in the aforesaid Rules.

(3)A statement, delivered under sub-paragraph (2) shall be valid till the expiry of six months from the date
of closure of the financial year in which it is so delivered, or until the date on which the balance sheet is laid
before the annual general meeting, or where the annual general meeting for any year has not been held, the
latest day on which that meeting should have been held in accordance with the provisions of the Companies
Act, 1956(1 of 1956), whichever is earlier and a fresh statement shall be delivered in each succeeding
financial year before accepting deposits in that financial year.

Full cover for public deposits

18. HFCs should ensure that at all times there is full cover available for public deposits accepted by them.
While calculating this cover the value of all debentures (secured and unsecured) and outside liabilities other
than the aggregate liabilities to depositors may be deducted from the total assets. Further, the assets should
be evaluated at their book value or realizable/market value whichever is lower for this purpose.

Prior approval for acquisition or transfer of control of deposit taking housing finance companies

19. Any takeover or acquisition of control of a deposit taking housing finance company, whether by
acquisition of shares or otherwise, or any merger or amalgamation of a deposit taking housing finance
company with another entity, or any merger or amalgamation of an entity with a deposit taking housing
finance company, shall require prior approval of the National Housing Bank in writing..

Application of other laws not barred

20.The provisions of paragraph 19 shall be in addition to, and not in derogation of the provisions of any
other law, rules, regulations or directions, for the time being in force.
Closure of Branches

21. No housing finance company accepting deposits shall close its branch/office without publishing such
intention in any one national level newspaper and in one vernacular newspaper in circulation in the relevant
place and without advising National Housing Bank, before ninety days of the proposed closure.

CHAPTER III - PRUDENTIAL NORMS

Income recognition

22 . (1)Income recognition shall be based on recognised accounting principles

(2)Income including interest/discount or any other charges on NPA shall be recognised only when it is
actually realised. Any such income recognised before the asset became non-performing and remaining
unrealised shall be reversed.

(3)In respect of hire purchase assets, where instalments are overdue for more than twelve months, income
shall be recognised only when hire charges are actually received. Any such income taken to the credit of
profit and loss account before the asset becoming non-performing and remaining unrealised, shall be
reversed.

(4)In respect of lease assets, where lease rentals are overdue for more than twelve months, the income
shall be recognised only when lease rentals are actually received. The net lease rentals taken to the credit of
profit and loss account before the asset became non-performing and remaining unrealised shall be reversed.

Explanation: For the purpose of this paragraph, ‘net lease rentals’ mean gross lease rentals as adjusted by
the lease adjustment account debited/credited to the profit and loss account and as reduced by depreciation
at the rate applicable under schedule XIV of the Companies Act, 1956

Income from investments

 

23 . (1)Income from dividend on shares of corporate bodies and units of mutual funds shall be taken in to
account on cash basis:

Provided that the income from dividend on shares of corporate bodies may be taken into account on accrual
basis when such dividend has been declared by the corporate body in its annual general meeting and the
housing finance company’s right to receive payment is established.

(2)Income from bonds and debentures of corporate bodies and from Government securities/bonds may be
taken into account on accrual basis:
Provided that the interest rate on these instruments is predetermined and interest is serviced regularly and
is not in arrears.

(3)Income on securities of corporate bodies or public sector undertakings, the payment of interest and
repayment of principal of which have been guaranteed by the Central Government or a State Government
may be taken into account on accrual basis.

Accounting standards

24 .Accounting Standards and Guidance Notes issued by the Institute of Chartered Accountants of India
(referred to in these directions as “ICAI”) shall be followed insofar as they are not inconsistent with any of
these directions.

Accounting for investments

25 . (1) (a) The board of directors of every housing finance company shall frame investment policy for the
company and implement the same;

(b)The criteria to classify the investments into current and long term investments shall be spelt out by the
Board of the company in the investment policy;

(c)Investment in securities shall be classified into current and long term, at the time of making each
investment;
(d)(i) There shall be no inter-class transfer on ad-hoc basis;

(ii) The inter-class transfer, if warranted, shall be effected only at the beginning of each half year, on April 1
or october1, with the approval of the Board;

(iii)The investments shall be transferred scrip wise, from current to long-term or vice-versa, at book value or
market value, whichever is lower; and

(iv)The depreciation, if any, in each scrip shall be fully provided for and appreciation, if any, shall be
ignored;/p>

(v)The depreciation in one scrip shall not be set off against appreciation in another scrip at the time of such
inter-class transfer, even in respect of the scrip of same category.

(2)A long term investment shall be valued in accordance with the Accounting Standard issued by ICAI.

(3)Quoted current investments shall, for the purpose of valuation, be grouped into the following categories,
viz.,

(a) equity shares,

(b) preference shares,
(c) debentures and bonds,
(d) Government securities including treasury bills,
(e) units of mutual fund, and
(f) others.

Quoted current investments for each category shall be valued at cost or market value, whichever is lower.
For this purpose, the investments in each category shall be considered scrip-wise and the cost and market
value aggregated for all investments in each category. If the aggregate market value for the category is less
than the aggregate cost for that category, the net depreciation shall be provided for or charged to the profit
and loss account. If the aggregate market value for the category exceeds the aggregate cost for the
category, the net appreciation shall be ignored. Depreciation in one category of investments shall not be set
off against appreciation in another category.

(4)Unquoted equity shares in the nature of current investments shall be valued at cost or breakup value,
whichever is lower. Where the balance sheet of the investee company is not available for two years, such
shares shall be valued at one rupee only.

(5)Unquoted preference shares in the nature of current investments shall be valued at cost or face value or
the net asset value whichever is less. In case the net asset value is negative or the balance sheet of the
investee company is not available for two years, it should be valued at rupees one per company.

(6)Investments in unquoted Government securities or Government guaranteed bonds shall be valued at

carrying cost.

(7)Unquoted investments in the units of mutual funds in the nature of current investments shall be valued at
the net asset value declared by the mutual fund in respect of each particular scheme.

(8)Commercial papers shall be valued at carrying cost.

Note:

Unquoted debentures shall be treated as term loans or other type of credit facilities depending upon the
tenure of such debentures for the purpose of income recognition and asset classification.

Need for Policy on Demand/Call Loans

26. (1)The Board of Directors of every housing finance company granting/intending to grant demand/call
loans shall frame a policy for the company and implement the same.

(2)Such policy shall, inter alia, stipulate the following, -

(i)A cutoff date within which the repayment of demand or call loan shall be demanded or called up;

(ii)The sanctioning authority shall, record specific reasons in writing at the time of sanctioning demand or
call loan, if the cutoff date for demanding or calling up such loan is stipulated beyond a period of one year
from the date of sanction;

(iii)The rate of interest which shall be payable on such loans;

(iv)Interest on such loans, as stipulated shall be payable either at monthly or quarterly rests;

(v)The sanctioning authority shall, record specific reasons in writing at the time of sanctioning demand or
call loan, if no interest is stipulated or a moratorium is granted for any period;

(vi)A cut-off date, for review of performance of the loan, not exceeding six months commencing from the
date of sanction;

(vii)Such demand or call loans shall not be renewed unless the periodical review has shown satisfactory
compliance with the terms of sanction.

Asset classification

27 .(1) Every housing finance company shall, after taking into account the degree of well defined credit
weaknesses and extent of dependence on collateral security for realisation, classify its lease/hire purchase
assets, loans and advances and any other forms of credit into the following classes, namely :-

(i) Standard assets;

(ii) Sub-standard assets;

(iii) Doubtful assets; and

(iv) Loss assets.

(2) The class of assets referred to above shall not be upgraded merely as a result of rescheduling, unless it
satisfies the conditions required for the upgradation.

Provisioning requirement

28 .Every housing finance company shall, after taking in to account the time lag between an account
becoming non-performing, its recognition as such, the realisation of the security and the erosion over time in
the value of security charged, make provision against sub-standard assets, doubtful assets and loss assets
as provided hereunder:-

Loans, Advances and Other Credit Facilities Including Bills Purchased and Discounted

(1)The provisioning requirement in respect of loans, advances and other credit facilities including bills
purchased and discounted shall be as under:

The entire assets shall be written off. If the assets are permitted to
•  Loss Assets remain in the books for any reason, 100% of the outstandings shall be
 provided for.
(a) 100% provision to the extent to which the advance is not covered
•  Doubtful Assets by the realisable value of the security to which the housing finance
company has a valid recourse shall be made. The realisable value is to
be estimated on a realistic basis;
(b) in addition to item (a) above, depending upon the period for which
  the asset has remained doubtful, provision to the extent of 20% to
50% of the secured portion (i.e. estimated realisable value of the
outstandings) shall be made on the following basis:-
 

% of provision
Period for which the asset has been considered as
doubtful
Up to one year 20
one to three years 30
More than three years 50
 

A general provision of 10% of total outstanding shall

(iii) Sub-standard Assets be made
 

A general provision of 0.4% of the total outstanding

(iv) Standard Assets in respect of non- amount of non-housing loans which are standard
housing loans assets shall be made.
 

Lease and hire purchase assets

(2)The provisioning requirements in respect of hire purchase and leased assets shall be as under:-

Hire purchase assets

(i)In respect of hire purchase assets, the total dues (overdue and future installments taken together) as
reduced by the finance charges not credited to the profit and loss account and carried forward as unmatured
finance charges and the depreciated value of the underlying asset, shall be provided for.

Explanation
For this purpose, the depreciated value of the asset shall be notionally computed as the original cost of the
asset to be reduced by depreciation at the rate of 20 percent per annum on a straight line method. In the
case of second hand asset, the original cost shall be the actual cost incurred for acquisition of such second
hand asset.

Additional provision for Hire Purchase and Leased assets

(ii)In respect of hire purchase and leased assets, additional provision shall be made as under :

Nil
(a)Where any amounts of hire charges or lease rentals are overdue up to 12
months
(b)Where any amounts of hire charges or lease rentals are overdue for more 10% of the net book
than 12 months but up to 24 months value
(c)Where any amounts of hire charges or lease rentals are overdue for more 40% of the net book
than 24 months but up to 36 months value
(d)Where any amounts of hire charges or lease rentals are overdue for more 70% of the net book
than 36 months but upto 48 months value
(e)Where any amounts of hire charges or lease rentals are overdue for more 100% of the net book
than 48 months value
 

(iii)On expiry of a period of 12 months after the due date of the last installment of hire purchase/ leased
asset, the entire net book value shall be fully provided for.

NOTES

(1)The amount of caution money/margin money or security deposits kept by the borrower with the housing
finance company in pursuance of the hire purchase agreement may be deducted against the provisions
stipulated under clause (i) above, if not already taken into account while arriving at the equated monthly
installments under the agreement. The value of any other security available in pursuance to the hire
purchase agreement may be deducted only against the provisions stipulated under clause (ii) above.

(2)The amount of security deposits kept by the borrower with the housing finance company in pursuance to
the lease agreement together with the value of any other security available in pursuance to the lease
agreement may be deducted only against the provisions stipulated under clause (ii) above.

(3)It is clarified that income recognition on and provisioning against NPAs are two different aspects of
prudential norms and provisions as per the norms are required to be made on NPAs on total outstanding
balances including the depreciated book value of the leased asset under reference after adjusting the
balance, if any, in the lease adjustment account. The fact that income on NPA has not been recognised
cannot be taken as reason for not making provision.

(4)An asset which has been re-negotiated or rescheduled as referred to in paragraph 2(1)(zc) of these
directions shall be a sub-standard asset or continue to remain in the same category in which it was prior to
its re-negotiation or reschedulement as a doubtful asset or a loss asset as the case may be. Necessary
provision is required to be made as applicable to such asset till it is upgraded. In case where an asset has
been rescheduled on account of natural calamities having impaired the repaying capacity of the borrower as
provided in second proviso to paragraph 2(1)(zc), any provisioning made prior to such rescheduling shall
neither be written back nor adjusted against any provisioning requirements that may arise in future.

(5) All financial leases written on or after April 1, 2002 attract the provisioning requirements as applicable to
hire purchase assets.

Disclosure in balance sheet

29 . (1) Every HFC shall, separately disclose in its balance sheet the provisions made as per paragraph 28
above without netting them from the income or against the value of assets.

(2)The provisions shall be distinctly indicated under separate heads of accounts separately for housing and
non-housing finance business and individually for each type of assets as under:-

(a) provisions for sub-standard, bad and doubtful and loss assets; and

(b)provisions for depreciation in investments

(3) Such provisions shall not be appropriated from the general provisions and loss reserves held, if any, by
the housing finance company.

(4)Such provision for each year shall be debited to the profit and loss account. The excess of provisions, if
any, held under the heads general provisions and loss reserves may be written back without making
adjustment against them.

(5)Every housing finance company shall, separately disclose, in the ‘Notes on Accounts’ to the Balance Sheet
in its next Annual Report,
 

(a) the details of the levy of penalty, if any, imposed on the housing finance company by the National
Housing Bank; and

(b) adverse comments, if any, on the housing finance company made in writing by the National Housing
bank on regulatory compliances, with a specific communication to the housing finance company to disclose
the same to the public.

Requirement as to Capital Adequacy

30 . (1) Every housing finance company shall, maintain a minimum capital ratio consisting of Tier-I and Tier-
II capital which shall not be less than-

(i) ten percent on or before March 31, 2001; and

(ii) twelve percent [on or before March 31, 2002 and thereafter. of its aggregate risk weighted assets and of
risk adjusted value of off-balance sheet items

(2) The total Tier-II capital, at any point of time, shall not exceed one hundred percent of Tier-I capital.

Explanations:

On balance sheet assets

(1) In these Directions, degree of credit risk expressed as percentage weightages have been assigned to
balance sheet assets. Hence, the value of each asset/item requires to be multiplied by the relevant risk
weights to arrive at risk adjusted value of assets. The aggregate shall be taken in to account for reckoning
the minimum capital ratio. The risk weighted asset shall be calculated as the weighted aggregate of funded
items as detailed hereunder:

% Weight
Weighted risk assets - On balance Sheet items
(1)   Cash and bank balances including fixed deposits and certificates 0
of deposits with banks
(2)   Investments:  
  (a) Approved securities as defined in the National Housing Bank Act, 0
1987
  (b) Bonds of public sector banks and fixed deposits/certificates of 20
deposits/bonds of public financial institutions
  (c) Units of Unit Trust of India 20
  (d) Mortgage backed security, receipt or other security evidencing the 50
purchase or acquisition by a housing finance company of an
undivided right, title or interest in any debt or receivable
originated by a housing finance company recognised and
supervised by National Housing Bank or a scheduled commercial
bank and secured by mortgage of residential immovable property,
provided the conditions specified below in Note (4) are fulfilled.
  e) Shares of all companies and debentures/bonds/ commercial papers 100
of companies other than in b) above/units of mutual funds other
  than in c) above.
  f) HFC’s investments in innovative perpetual debt of other HFCs/ 100
banks/ financial institutions.
 
(3) a) Housing/ Project Loans guaranteed by Central/ State 0
Governments.

Note: Where guarantee has been invoked and the concerned

Government has remained in default for a period of more than 90
days after the invocation of the guarantee, a risk weight of 100%
should be assigned.

 
  b) (b)(i) Housing loans sanctioned to individuals up to Rs. 30 lakhs 50
secured by mortgage of immovable property, which are classified
as standard assets with LTV Ratio is = or < 75%
    (b)(ii) Housing loans sanctioned to individuals above Rs. 30 lakhs 75
secured by mortgage of immovable property, which are classified
as standard assets with LTV Ratio is = or < 75%
    (b)(iii) Housing loans sanctioned to individuals, irrespective of the 100
amount, secured by mortgage of immovable property, which are
classified as standard assets, where LTV Ratio is > 75%
  (c) Other housing loans 100

 
  d) (i)Fund based and non-fund based exposures to commercial real 100
estate (office buildings, retail space, multi-purpose commercial
premises, multi-family residential buildings, multi-tenanted  
commercial premises, industrial or warehouse space, hotels, land
acquisition, development and construction, etc.).  
    

ii)Investments in Mortgage Backed Securities (MBS) and other 125

securitised exposures backed by exposures as at (i) above.
(4)   Current Assets:  
  a) Stock on hire (please see note 2 below) 100
  b) Inter corporate loans/ deposits 100
  c) Loans and advances fully secured by company’s own deposits 0
  d) Loan to staff 0
  e) Other secured loans and advance considered good 100
  f) Bills purchased/ discounted 100
  g) Others (to be specified) 100
(5)   Fixed Assets (net of depreciation):  
  a) Assets leased out (net book value) 100
  b) Premises 100
  c) Furniture & Fixtures 100
  d) Other Fixed Assets(to be specified) 100
(6)   Other Assets:  
  a) Income tax deducted at source (net of provision) 0
  b) Advance tax paid (net of provision) 0
  c) Interest due on Government Securities and approved securities 0
  d) Others(to be specified) 100
Notes:

(1)Netting may be done only in respect of assets where provisions for depreciation or for bad and doubtful
debts have been made.

(2) Stock on hire should be shown net of finance charges i.e. interest and other charges recoverable.

(3)Assets which have been deducted from owned fund to arrive at tier-I capital pursuant to paragraph 2(1)
(zf) will have a weightage of “0”.

(4)For being eligible for risk weight of 50%, investments in mortgage backed security, receipt or other
security referred to in item (d) of sub-Explanation (2) should fulfill the following terms and conditions,
namely :-

(a)The assignment of debt together with the securities therefor and the receivables thereunder by the
originating housing finance company or scheduled commercial bank in favour of the trust or the
securitisation company as defined in Clause (za) of sub-section (1) of section 2 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(54 of 2002) issuing such
receipt or other security is complete and irrevocable.

(b)The trust or the securitisation company is holding the debt together with the securities therefor
exclusively for the benefit of the investors in such receipt or other security.

(c)The originating housing finance company or scheduled commercial bank participating in the securitisation
transaction, in which such mortgage backed security, receipt or other security has been issued, as a seller,
manager, servicer or provider of credit enhancement or liquidity facilities;

(i)does not own any equity or preference share in the capital of the securitisation company or is the
beneficiary of the trust;

(ii)has not named the trust or the securitisation company in such manner which implies any connection with
it;

(iii)does not have any of its director, officer or employee on the Board of securitisation company unless the
Board is made up of at least three members and there is a majority of independent directors and the official
representing the originating institution in the Board of the securitisation company does not have veto
powers;

(iv)does not directly or indirectly control the trust or the securitisation company; and

(v)has not agreed to support any losses arising out of the securitisation transaction or to be suffered by the
investors involved in it or agreed to bear recurring expenses of the transaction.

(d)Each debt securitised is a loan advanced to an individual for the acquisition/ construction of residential
immovable property which has been mortgaged in favour of the originating housing finance company or
scheduled commercial bank on exclusive basis.

(e)Securitised debt had investment grade credit rating by any of the credit rating agencies at the time of
assignment to the trust/ securitisation company.

(f)The investors are entitled to call upon the issuer - the trust/ securitisation company to take steps for
recovery in the event of default and distribute the net proceeds to the investors as per the terms of issue of
receipt or other security.

(g)The trust or the securitisation company undertaking the issue in which investment has been made is not
engaged in any business other than the business of issue and administration of securitisation of housing
loans.

(h)The trustees appointed to manage the issue is governed by the provisions of Indian Trusts Act, 1882 (2 of
1882).

Off-Balance Sheet items

(2)In these directions, degrees of credit risk exposure attached to off-balance sheet items have been
expressed as a percentage of credit conversion factor. Hence the face value of each item requires to be first
multiplied by the relevant conversion factor to arrive at risk adjusted value of off-balance sheet item. The
aggregate shall be taken in to account for reckoning the minimum capital ratio. This shall have to be again
multiplied by the risk weight of 100. The risk weighted value of the off-balance sheet items shall be
calculated as per the credit conversion factors of non-funded items as detailed under:-

Nature of Items Credit conversion factor

  (%)
i) Undisbursed amounts of Housing loans sanctioned 50
ii) Financial & Other guarantees 100
iii) Shares/ debentures underwriting obligations 50
iv) Partly-paid shares/ debentures 100
v) Bills discounted/ rediscounted 100
vi) Lease contracts entered into but yet to be executed 100
vii) Other contingent liabilities (to be specified) 50
Provided that in item (i) above, in those cases where no documents are executed, no disbursement has
taken place and in case sanction lapses in course of time and notice to that effect is served on prospective
borrower, credit conversion factor shall be taken as 0% and in the case of partly disbursed housing loans
credit conversion factor shall be taken as 50%.

Note: Cash margins/ deposits shall be deducted before applying the conversion factor.

Restrictions on investment in real estate, exposure to and engagement of brokers

31.(1) INVESTMENT IN LAND OR BUILDINGS

No housing finance company, shall invest in land or buildings, except for its own use, an amount exceeding
twenty per cent of its capital fund,

Provided that such investment over and above ten percent of its owned fund shall be made only in
residential units.
Note:

‘Capital fund’ means the aggregate of ‘tier-I capital’ and ‘tier-II capital’

Provided that the land or buildings acquired in satisfaction of its debts shall be disposed off by the housing
finance company within a period of three years or within such a period as may be extended by the National
Housing Bank, from the date of such acquisition if the investment in these assets together with such assets
already held by the housing finance company exceeds the above ceiling.

(2) EXPOSURE TO CAPITAL MARKET:

(a) Limits on housing finance companies’ exposure to capital market

The aggregate exposure of a housing finance company to the capital market in all forms (both fund based
and non-fund based) should not exceed 40 per cent of its net worth as on March 31 of the previous year.
Within this overall ceiling, direct investment in shares, convertible bonds / debentures, units of equity-
oriented mutual funds and all exposures to Venture Capital Funds (VCFs) [both registered and unregistered]
of the housing finance company should not exceed 20 per cent of its networth.
Net worth for the purpose of this sub-paragraph would comprise of Paid-up capital plus Free Reserves
including Share Premium but excluding Revaluation Reserves, plus Investment Fluctuation Reserve and
credit balance in Profit & Loss account, less debit balance in Profit and Loss account, Accumulated Losses
and Intangible Assets. No general or specific provisions should be included in computation of net worth.
Infusion of capital through equity shares, either through domestic issues or overseas floats after the
published balance sheet date, may also be taken into account for determining the ceiling on exposure to
capital market. Housing Finance Company shall furnish to the National Housing Bank, statutory auditor’s
certificate on completion of the augmentation of capital before reckoning the same for above purpose.

(b) Components of Capital Market Exposure

Capital market exposure of housing finance company shall include both their direct exposures and indirect
exposures. The aggregate exposure (both fund and non-fund based) of Housing Finance Company to capital
markets in all forms shall include the following:

i) direct investment in equity shares, convertible bonds, convertible debentures and units of equity-oriented
mutual funds the corpus of which is not exclusively invested in corporate debt;

ii) advances against shares/bonds/debentures or other securities or on clean basis to individuals for
investment in shares (including Initial Public Offers/Employees Stock Options), convertible bonds,
convertible debentures, and units of equity-oriented mutual funds;

iii) advances for any other purposes where shares or convertible bonds or convertible debentures or units of
equity oriented mutual funds are taken as primary security;
iv) advances for any other purposes to the extent secured by the collateral security of shares or convertible
bonds or convertible debentures or units of equity oriented mutual funds, i.e. where the primary security
other than shares/convertible bonds/convertible debentures/units of equity oriented mutual funds does not
fully cover the advances;

v) secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and
market makers;

vi) loans sanctioned to corporates against the security of shares / bonds/ debentures or other securities or
on clean basis for meeting promoter’s contribution to the equity of new companies in anticipation of raising
resources;

vii) bridge loans to companies against expected equity flows/issues;

viii) underwriting commitments taken up by the housing finance companies in respect of primary issue of
shares or convertible bonds or convertible debentures or units of equity oriented mutual funds;

ix) financing to stockbrokers for margin trading; and

x) all exposures to Venture Capital Funds (both registered and unregistered). These will be deemed to be on
par with equity and hence will be reckoned for compliance with the capital market exposure ceilings (both
direct and indirect).

(c) Items excluded from Capital Market Exposure

The following items shall be excluded from the aggregate exposure ceiling of 40 per cent of networth and
direct investment exposure ceiling of 20 per cent of networth (wherever applicable):

i) Investment of a housing finance company in own subsidiaries, joint ventures, and investments in unlisted
shares and convertible debentures, convertible bonds issued by institutions forming crucial financial
infrastructure and other All India Financial Institutions as detailed below. After listing, the exposures in
excess of the original investment (i.e. prior to listing) shall form part of the Capital Market Exposure.

1. National Securities Depository Ltd. (NSDL)

2. Central Depository Services (India) Ltd. (CDSL)

3. National Securities Clearing Corporation Ltd. (NSCCL)

4. National Stock Exchange (NSE)

5. Clearing Corporation of India Ltd., (CCIL)

6. Credit Information Bureau of India Ltd. (CIBIL)

7. Multi Commodity Exchange Ltd. (MCX)

8. National Commodity and Derivatives Exchange Ltd. (NCDEX)

9. National Multi-Commodity Exchange of India Ltd. (NMCEIL)

10. National Collateral Management Services Ltd. (NCMSL)

All India Financial Institutions

11. Industrial Finance Corporation of India, Ltd. (IFCI)

12. Tourism Finance Corporation of India Ltd. (TFCI)
13. Risk Capital & Technology Finance Corporation Ltd. (RCTC)
14. Technology Development & Information Co. of India Ltd. (TDICI)
15. National Housing Bank (NHB)
16. Small Industries Bank of India (SIDBI)
17. National Bank for Agriculture & Rural Development (NABARD)
18. Export Import Bank of India (EXIM Bank)
19. Industrial Investment Bank of India (IIBI)
20. Life Insurance Corporation of India (LIC)
21. General Insurance Corporation of India (GIC)

ii) Tier I and Tier II debt instruments issued by other housing finance companies;

iii) Investment in Certificates of Deposit (CDs) of other housing finance companies;

iv) Preference Shares;

v) Non-convertible debentures and non-convertible bonds;

vi) Units of Mutual Funds under schemes where the corpus is invested exclusively in debt instruments;

vii) Shares acquired by housing finance companies as a result of conversion of debt/overdue interest into
equity under a Corporate Debt Restructuring (CDR) mechanism.

(d) Computation of exposure

For computing the exposure to the capital markets, loans/advances sanctioned and guarantees issued for
capital market operations would be reckoned with reference to sanctioned limits or outstanding, whichever is
higher. Further, direct investment of a housing finance company in shares, convertible bonds, convertible
debentures and units of equity oriented mutual funds shall be calculated at their cost price.

(3) ENGAGEMENT OF BROKERS

For engagement of brokers to deal in investment transactions, the housing finance companies should
observe the following:

(a) Transactions should not be put through the brokers' accounts. The brokerage on the deal payable to the
broker, if any (if the deal was put through with the help of a broker), should be clearly indicated on the
notes/memorandum put up to the top management seeking approval for putting through the transaction and
separate account of brokerage paid, broker-wise, should be maintained.

(b) If a deal is put through with the help of a broker, the role of the broker should be restricted to that of
bringing the two parties to the deal together.

(c) While negotiating the deal, the broker is not obliged to disclose the identity of the counterparty to the
deal. On conclusion of the deal, he should disclose the counterparty and his contract note should clearly
indicate the name of the counterparty.

(d) On the basis of the contract note disclosing the name of the counterparty, settlement of deals, viz. both
fund settlement and delivery of security should be directly between the parties and the broker should have
no role to play in the process.

(e) With the approval of their top managements, housing finance companies should prepare a panel of
approved authorized brokers which should be reviewed annually or more often if so warranted. Clear-cut
criteria should be laid down for empanelment of brokers, including verification of their creditworthiness,
market reputation, etc. A record of broker-wise details of deals put through and brokerage paid, should be
maintained.

(f) A disproportionate part of the business should not be transacted through only one or a few brokers.
Housing finance companies should fix aggregate contract limits for each of the approved brokers. A limit of
5% of total transactions (both purchase and sales) entered into by a housing finance company during a year
should be treated as the aggregate upper contract limit for each of the approved brokers. This limit should
cover both, the business initiated by a housing finance company and the business offered / brought to the
housing finance company by a broker. Housing finance companies should ensure that the transactions
entered into through individual brokers during a year normally do not exceed this limit. However, if for any
reason it becomes necessary to exceed the aggregate limit for any broker, the specific reasons therefore
should be recorded, in writing, by the authority empowered to put through the deals. Further, the board
should be informed of this, post facto. However, the norm of 5% would not be applicable (i) to a housing
finance company whose total transactions in a year do not exceed Rs.20 crores; and (ii) to housing finance
companies’ dealings through Primary Dealers.
(g) The auditors who audit the treasury operations should scrutinise the business done through brokers also
and include it in their monthly report to the Chief Executive Officer of the housing finance company. Besides,
the business put through any individual broker or brokers in excess of the limit, with the reasons therefor,
should be covered in the half-yearly review to the Board of Directors.

(h) Housing finance companies may undertake securities transactions through stock brokers only on National
Stock Exchange/Bombay Stock Exchange/ Over the Counter Exchange of India.

No housing finance company shall,-

32 . (1) No housing finance company shall,-

(i) lend to-

(a)any single borrower exceeding fifteen percent of its owned fund; and

(b)any single group of borrowers exceeding twenty-five percent of its owned fund;

(ii) invest in-

(a)the shares of another company exceeding fifteen percent of its owned fund;

(b)the shares of a single group of companies exceeding twenty-five percent of its owned funds;

(iii) lend and invest(loans/investments together) exceeding -

(a)twenty-five percent of its owned fund to a single party; and

(b)forty percent of its owned fund to a single group of parties. Provided that within the overall ceiling
prescribed under Sub- paragraph (1), investment of a housing finance company in the shares of another
housing finance company shall not exceed ten per cent of the equity capital of the investee company.

(2) Where at the commencement of these provisions;

(i) the lending of a housing finance company is in excess of the ceiling prescribed under sub-paragraph (1),
such excess portion shall be brought down by the housing finance company as per the repayment schedule
in due course; and
(ii) the investment of a housing finance company is in excess of the ceiling prescribed under sub-paragraph
(1), such excess portion shall be disposed of within a period not exceeding three years or within such period
as may be extended by the National Housing Bank.

Notes:

(1)For determining the above mentioned limits, off-balance sheet exposures be converted in to credit risk by
applying the conversion factors explained here in above.

(2)The investment in debentures for the above purpose be treated as credit and not investment.

(3)The above ceilings on credit/investments shall be applicable to the own group of the housing finance
company as well as to the other group of borrowers/ investee companies.

(4)"Shares" shall mean and include investment in various instruments such as Equity Shares, Preference
Shares eligible for capital status, Subordinated Debt Instruments, Hybrid Debt Capital Instruments and any
other instruments approved as in the nature of capital.

(5) Investment of a housing finance company in the shares of its subsidiaries, companies in the same group
and other housing finance companies, to the extent of ten per cent of its owned fund, shall carry a risk
weight of 100% as prescribed at item (2) (e) of 'Weighted Risk Assets- on balance sheet items under
'Explanation' to Paragraph 30 of these directions. Such investment in excess of ten per cent of its owned
fund shall continue to be deducted from the net owned fund of the housing finance company as prescribed at
item.(I) of 'Explanation' to Section 29A of the National Housing Bank Act, 1987.

CHAPTER IV - DIRECTIONS TO AUDITORS

Auditor’s report to contain specified matters

33 .In addition to the report made by the auditor under section 227 of the Companies Act, 1956 (1 of 1956)
on the accounts of a housing finance company after the commencement of these Directions, the auditor shall
make a report to the Board of Directors of the company on the matters specified in paragraphs 34 and 35
below

Matters to be included in the auditor’s report

34 .The auditor’s report on the accounts of a housing finance company shall include a statement on the
following matters, namely :-
(i) where the housing finance company was incorporated before 12th June, 2000 -whether it has applied for
registration as required under section 29A of the National Housing Bank Act, 1987 and whether it has
received any communication from NHB about grant or refusal of certificate of registration to it;

(ii) where the housing finance company was incorporated on or after 12th June, 2000 - whether it has
obtained a certificate of registration from National Housing Bank;

(iii)whether the housing finance company has complied with the liquidity requirements as specified under
Section 29B of the National Housing Bank Act, 1987 and kept the securities with the designated bank;

(iv)whether the housing finance company has complied with Section 29C of the National Housing Bank Act,
1987;

(v)whether the housing finance company has complied with the provisions of these Directions;

(vi)whether the capital adequacy ratio as disclosed in the return submitted to National Housing Bank has
been correctly determined and whether such ratio is in compliance with the minimum capital to risk weighted
asset ratio as perscribed by the National Housing Bank in these Directions,

(vii)where the housing finance company is accepting/ holding public deposits - whether

(a) public deposits accepted by the housing finance company are within admissible limits;

(b) total borrowings of the housing finance company i.e. deposits inclusive of public deposits together with
the amounts referred to in sub-clauses (iii) to (vii) of sub-section (bb) of Section 45 I of the Reserve Bank of
India Act, 1934 and loans or other assistance from the National Housing Bank are within the limit prescribed
in these Directions;

(c) the deposits in excess of the admissible limit held by the housing finance company have been regularised
in the manner stipulated by National Housing Bank;

(d) the credit rating for deposits i.e _________ (mention the rating) assigned by the credit rating agency
viz., ______________ (name of the agency) on __________(the date) is in force and the aggregate amount
of deposits outstanding as at any point during the year has exceeded the limit specified by the rating
agency;

(e) the housing finance company has defaulted in paying to its depositors the interest and/or principal
amounts of deposits after such interest and/or principal became due;

(f) in case of opening of new branches or offices for acceptance of public deposits or closure of branches or
offices, the housing finance company has complied with the relevant provisions of these Directions.
(viii)where the housing finance company is not accepting/ holding public deposits - whether

(a)the Board of Directors has passed a resolution for non-acceptance of any public deposits;

(b)the company has accepted any public deposits during the relevant period/ year;

(c) the company has complied with prudential norms.

Reasons to be stated for unfavourable or qualified statement

35 .Where, in the auditor’s report, the statement regarding any of the items referred to in paragraph 34
above is unfavourable or qualified, the auditor’s report shall also state the reasons for such unfavourable or
qualified statement, as the case may be. Where the auditor is unable to express any opinion on any of the
items referred to in paragraph 34 above, the auditor’s report shall indicate such fact together with reasons
therefor.

Obligation of auditor to report to the National Housing Bank

36 .Where, in the case of a housing finance company, the statement regarding any of the items referred to
in paragraph 34 above is unfavourable or qualified or in the opinion of the auditor the company has not
complied with the provisions of these Directions or the provisions of chapter V of the National Housing Bank
Act, 1987, it shall be the obligation of the auditor to make a report containing the details of such
unfavourable or qualified statements and/or about the non-compliance, as the case may be, in respect of the
company to head office of the National Housing Bank at New Delhi.

CHAPTER V - MISCELLANEOUS

Opening of Branches

37. A housing finance company shall, before opening a branch or an office, inform National Housing Bank in
writing of its intention to open a branch or an office.
Loans against housing finance company's own shares prohibited

38 . (1)No housing finance company shall lend against its own shares.

(2)Any outstanding loan granted by a housing finance company against its own shares on the date of
commencement of these directions shall be recovered by the housing finance company as per the repayment
schedule.

HFC failing to repay public deposit prohibited from making loans and investments

39 .A housing finance company which has failed to repay any public deposit or part thereof in accordance
with the terms and conditions of such deposit, as provided in section 36A(1) of the National Housing Bank
Act, 1987, shall not grant any loan or other credit facility by whatever name called or make any investment
or create any other asset as long as the default exists.

Constitution of Audit Committee

40 .A housing finance company having assets of Rs. 50 crore and above as per its last audited balance sheet
shall constitute an Audit Committee consisting of not less than three non-executive Directors of the Board.

Explanation

The Audit Committee constituted under this paragraph shall have the same powers, functions and duties as
laid down in section 292A of the Companies Act, 1956 (1 of 1956).

Accounting year

41 .Every housing finance company shall prepare its balance sheet and profit and loss account as on March
31 every year with effect from the accounting year ending on March 31, 2002:

Provided that if the accounting year of any housing finance company ends on any date other than March 31,
2002, such housing finance company shall prepare its balance sheet and profit and loss account for any
fraction of the year ending on March 31, 2002.

Copies of balance sheet and accounts together with the Directors’ report to be furnished to the
National Housing Bank.

42. Every housing finance company shall deliver to the National Housing Bank an audited balance sheet as
on the last date of each financial year and audited profit and loss account in respect of that year as passed
by the housing finance company in General Meeting together with a copy of the report of the Board of
Directors laid before the housing finance company in such meeting in terms of Section 217(1) of the
Companies Act, 1956 (1 of 1956) within 15 days of such meeting as also a copy of the report and the notes
on accounts furnished by its Auditors.

Auditor's Certificate

43. Every housing finance company holding/accepting public deposits shall furnish to the National Housing
Bank, along with the copy of the audited balance sheet as provided under paragraph 42, a copy of the
auditor’s report to the Board of Directors and a certificate from its auditors to the effect that the full amount
of liabilities to the depositors of the company including interest payable thereon are properly reflected in the
balance sheet and that the company is in a position to meet the amount of such liabilities to the depositors.

Returns to be submitted to the National Housing Bank

44. (1) Without prejudice to the provisions of paragraph 42, every housing finance company shall submit to
the National Housing Bank :

(i) an annual return furnishing the information specified in Schedule I to these Directions with reference to
its position as on 31st March every year and a half yearly return furnishing the information specified in
Schedule II to these Directions with reference to its position as on 30th September and 31st March every
year

(ii) further, housing finance companies accepting/holding public deposits, housing finance companies not
accepting/holding public deposits but having an asset size of Rs. 100 crores and more, shall submit to the
National Housing Bank a quarterly return furnishing the information specified in Schedule III with reference
to its position as at the end of every calendar quarter.

(2) (i) Every housing finance company shall, within one month from the commencement of business, deliver
to the National Housing Bank, a written statement containing a list of –

(a) the names and official designations of its principal officers;

(b) the complete postal address, telephone number/s and fax number/s of the registered/ corporate office;

(c) the names and office address of the auditors of the company;

(d) the names and the residential addresses of the directors of the housing finance company; and

(e) the specimen signatures of the officers authorised to sign on behalf of the housing finance company,
returns specified in sub-paragraph (1).

(ii) any change in the list referred to in clause (i) of this sub-paragraph shall be intimated to the National
Housing Bank within one month from the occurrence of such change.

Balance-sheet, returns, etc. to be submitted to the office of National Housing Bank at New Delhi

45.Any balance sheets, returns or information required to be submitted or furnished to the National Housing
Bank in pursuance of these Directions shall be submitted or furnished to the office of National Housing Bank
at New Delhi.

Exemptions

46. The National Housing Bank may, if it considers it necessary for avoiding any hardship or for any other
just and sufficient reason, grant extensions of time to comply with or exempt any housing finance company
or class of housing finance companies, from all or any of the provisions of these Directions either generally
or for any specified period subject to such conditions as the National Housing Bank may impose./p>

Interpretations

47. For the purpose of giving effect to the provisions of these directions, the National Housing Bank may, if
it considers necessary, issue necessary clarifications in respect of any matter covered herein and the
interpretation of any provision of these directions given by the National Housing Bank shall be final and
binding on all the parties concerned.

Saving of action taken or that may be taken for contravention of the Housing Finance Companies
(NHB) Directions, 2001

48. It is hereby clarified that the supersession of the Housing Finance Companies (NHB) Directions, 2001, as
amended from time to time, shall not in any way affect:

(i) any right, obligation or liability acquired, accrued or incurred thereunder;

(ii) any penalty, forfeiture, or punishment incurred in respect of any contravention committed thereunder;

(iii) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability,
penalty, forfeiture or punishment as aforesaid;

and any such investigation, legal proceedings or remedy may be instituted, continued, or enforced and any
such penalty, forfeiture or punishment may be imposed as if those Directions had not been superseded.

SCHEDULE I

(See paragraph 44 of the Housing Finance Companies (NHB) Directions, 2010)

Annual Return as on March 31, _______

 
 (Read instructions carefully before filling the return)

To be filled by National Housing

Bank (NHB)
File No.  
ID No.  
Nature of Business  
District Code  
State Code  
   
1.  Name of the Company  
Income Tax PAN  
2.  Full address of the
(i) Registered Office: ________________________________________
________________________________________ _____________________________ PIN
______
Telephone _____________ Fax____________ e-mail ___________
Telex ___________________ Telegraphic address _____________
(ii) Head/Administrative Office*:__________________________________
________________________________________
__________________________PIN__________
Telephone _____________ Fax____________ e-mail ___________
Telex ___________________ Telegraphic address _____________
3. Whether a Government Company : Yes/No
4. State/Union Territory in which the company is registered :  
5. Status + (i) Public Ltd. [ ] (ii) Deemed Public Company [ ]
  (iii) Private Ltd. [ ] (iv) Branch of a Foreign company [ ]
DDMMYYYY
6. Date of (i) Incorporation [ ][ ] [ ][ ] [ ][ ][ ][ ]
(ii) Commencement of business [ ][ ] [ ][ ] [ ][ ][ ][ ]
(iii) Financial year of the company [ ] [ ] [ ][ ] [ ][ ][ ][ ]
7. (i)Principal object of the company as mentioned in its  
Memorandum of Association:
(ii)Principal business transacted by the company during the year under  
reporting:
(iii)Other business transacted by the company during the year under  
reporting:
8.Other business transacted by the company during the year under reporting:  

Yes/No
If yes, give the date of application and if already registered, give  
the Registration no. allotted by the National Housing Bank
9.No.of branches/offices b  
 
10.  Total number of employees (i) Full time :
(ii) Part time  
(iii) Honorary basis :  
11. Whether shares of the company are listed on stock exchange/s Yes/No
If yes furnish the name/s of the stock exchange/s  
12. Whether the Half-yearly Return on prudential norms as on the date of Yes/No
this return has been submitted to the NHB. If yes, give the date of
furnishing the return
13. (a) Whether the company at the beginning of  the financial year to Yes/No
which the return pertains, was holding any credit rating/s for its fixed
deposits ?
If yes, give the following details :
(i) Name of the rating agency :  
(ii) Rating awarded by such agency :  
(iii) Date of such rating and its validity period :  
(b) Whether the company during the financial year to which the return pertains Yes/No
obtained any credit rating/s for its fixed deposits ?
If yes, give the following details
(i) Name of the rating agency :  
(ii) Rating awarded by such agency  
(iii) Date of such rating and its validity period  
(c) Whether during the financial year to which the return pertains, there was Yes/No
any change in the credit rating/s mentioned in (a) or (b) above?
If yes, give the following details
(i) Name of the rating agency :  
(ii) Rating awarded by such agency :  
(iii) Date of such rating and its validity period :  
(iv) Reasons for variation in credit rating, if any :  
14. Whether a holding company or a subsidiary $  
15.Whether the company is a joint venture: Yes/No
16. Name/s and address/es of the company's ____________________________________
promoters/ promoting institutions and ____________________________________
the shareholding pattern ____________________________________
[Enclose separate sheet, if necessary]
17.(a) Name/s and address/es _____________________________________
of the company's auditors _______________________________________
________________________________________
________________________________________
Telephone____________ Fax _____________
No. of years for which the same partner/
proprietor is auditing the accounts of the company  ________________________
18. Name/s and address/es ________________________________________
of the company's bankers ________________________________________
[Enclose separate sheet, ________________________________________
if necessary] _________________________________________
19.Name/s and address/es ________________________________________
of the present directors _______________________________________
[Enclose separate sheet, ________________________________________
if necessary] _________________________________________
20. Whether the company has created a reserve fund in terms of Section 29C of Yes/No
the National Housing Bank Act, 1987 :
 
If yes, give the following details of such reserve fund for the financial year to which the return
pertains :
(i) Amount outstanding at the   beginning of the year :  
(ii) Amount transferred to the fund during the year :  
(iii) Whether any amount was appropriated from the reserve fund during the year: Yes/No
If yes, (a) the amount appropriated  
(b) purpose of appropriation  

 
(c) date of reporting the appropriation to NHB  
(iv) Amount outstanding as on the date of this return  
21. Name of the Chief Executive  
21 (a) Phone Number with STD code  
21 (b) Mobile Number  
21 (c) Fax Number  
21 (d) Email  
22. Name of the compliance/Nodal Officer  
22 (a) Phone Number with STD code  
22 (b) Mobile Number  
22 (c)Fax Number  
22 (d) Email  
23. Name of the Principle Officer under PML Act.  
23 (a) Phone Number with STD code  
23 (b) Mobile Number  
23 (c)Fax Number  
23 (d) Email  
 

* If it is a place other than the Registered Office.

+ Tick the box which is applicable.

b A list showing the names and addresses of the places where the branches/offices of the company are
situated should be enclosed.

$ If it is a subsidiary, the name of the holding company may be indicated.

PART - 1

(A)
 Particulars of Public Deposits Outstanding as on March 31, ____

(Amount in lakhs of rupees)

PARTICULARS Item No. of  

Item
Code Accounts Amount
No.
1 2 3 4 5
1. Deposits from public in the form of 111    
fixed deposits, recurring deposits, etc.
2. (i) Deposits received by a public 112    
company from its shareholders
 
(ii) Deposits received by a private
limited company from joint 113
shareholders other than the first named
shareholder
3. Money received by issue of non- 114    
convertible unsecured debentures (See
instruction no. 13)
4. Total (1+2+3) 110    
5. Any other deposits not included in part 120    
2 of  the Schedule 
6. Total (4+5) 130    
7. Of the total deposits at item 6 above,      
those
  (i) Repayable on demand or on notice* 141    
  (ii) For a period less than 12 months.* 142    
  (iii) For a period of 12 months or more 143    
but less than 24 months.
  (iv) For a period of 24 months or more 144    
but less than 48 months.24 months or
more but less than 48 months.
  (v) For a period of 48 months or more 145    
but less than 60 months.
  (vi) For a period of 60 months 146    
  (vii) For a period more than 60 months 147    
 but less than 84 months
  (viii) For a period of 84 months. 148    
  (ix) For a period more than 84 months* 149    
8. Total [7(i) to (ix)] should tally with 6 140    
above
9. Of the total deposits at item 6 above,      
those free of interest and bearing
interest (excluding brokerage, if any F

(Rate of interest : percent per annum)

  (i) Free of interest 151    
  (ii) Below 6% 152    
  (iii)6% or more but less than 9% 153    
  (iv)9% or more but less than 11% 154    
  (v)11% or more but less than 12.5% 155    
  (vi) At 12.5% 156    
  (vii) More than 12.5% but less than 157    
14%
  (viii) More than 14%* 158    
10. Total [9(i) to (viii)] should tally with 150    
item 6 above
Break-up of deposits at item 6 above      
according to the size of deposits
11.
  (i) upto Rs.5,000 161    
  (ii) Rs.5,001 to Rs.10,000 162    
  (iii) Rs.10,001 to Rs.25,000 163    
  (iv) Rs.25,001 to Rs.50,000 164    
  (v) Rs.50,001 to Rs.100,000 165    
  (vi) Over Rs.100,000* 166    
12. Total [11(i) to (vi)] should tally with item 160    
6 above
13. Of the total deposits at item 6 above      
  (i) those which have matured but not 171    
claimed
  (ii)those which have matured and claimed 172    
but not paid
14. Of the deposits of the type at item 4 above      
   (i) deposits outstanding at the beginning of 181    
the year
  (ii)deposits accepted/renewed during the 182    
year
  (iii)deposits repaid during the year 183    
  (iv)deposits outstanding at the end of the 184    
year
15. Of the deposits of the type at item 5 above      
  (i) deposits outstanding at the beginning of 191    
the year
  (ii) deposits accepted/renewed during the 192    
year
  (iii) deposits repaid during the year 193    
  (iv) deposits outstanding at the end of the 194    
year
16. Of the total deposits at item 6 above, 195    
deposits received from non-resident
  Indians
 

(B)

Particulars of Deposits Mobilised [Items 14 (ii) and 15 (ii) of Part - 1(A)] During the Reporting
Period

(Amount in lakhs of rupees)

PARTICULARS Item No. of Amount

Item
Code Accounts
No.
1 2 3 4 5
1. Of the total deposits at item no.14 (ii) of      
Part-1(A), those (i) Repayable on
demand or on notice*  

111.1
  (ii) For a period less than 12 months.* 112.1    
  (iii) For a period of 12 months or more 113.1    
 but less than 24 months
  (iv) For a period of 24 months or more 114.1    
but less than 48 months
  (v) For a period of 48 months or more 115.1    
but less than 60 months
  (vi) For a period of 60 months 116.1    
  (vii) For a period more than 60 months 117.1    
but less than 84 months
  (viii) For a period of 84 months. 118.1    
  (ix) For a period more than 84 months* 119.1    
2. Total [1 (i) to (ix)] should tally with 14 110.1    
(ii) of Part-1(A)

Part-1(A)
3. Of the total deposits at item no. 15 (ii)      
of Part -1(A)
  (i) Repayable on demand or on notice* 121.1    
  (ii) For a period less than 12 months* 122.1    
  (iii) For a period of 12 months or more 123.1    
but less than 24 months
  (iv) For a period of 24 months or more 124.1    
but less than 48 months
  (v) For a period of 48 months or more 125.1    
but less than 60 months.
  (vi) For a period of 60 months 126.1    
  (vii) For a period more than 60 months 127.1    
but less than 84 months
  (viii) For a period of 84 months 128.1    
  (ix) For a period more than 84 months* 129.1    
4. Total [3 (i) to (ix)] should tally with 15 120.1    
(ii) of Part-1(A)
5. Of the total deposits at item 14 (ii) of      
Part-1(A), those free of interest and
bearing interest (excluding brokerage, if
any) F (Rate of interest : % per annum)
  (i) Free of interest 131.1    
  (ii) Below 6% 132.1    
  (iii) 6% or more but less than 9% 133.1    
  (iv) 9% or more but less than 11% 134.1    
  (v) 11% more but less than 12.5% 135.1    
  (vi) At 12.5 % 136.1    
  (vii) More than 12.5 % but less than 137.1    
14%
  (viii) More than 14%* 138.1    
6. Total [5 (i) to (viii)] should tally with 14 130.1  
(ii) of Part-1(A)
7. Of the total deposits at item 15 (ii) of      
Part-1(A), those free of interest and
bearing interest (excluding brokerage, if
any) F (Rate of interest : % per annum)
  (i) Free of interest 141.1    
  (ii) Below 6% 142.1    
  (iii) 6% or more but less than 9% 143.1    
  (iv) 9% or more but less than 11% 144.1    
  (v) 11% more but less than 12.5% 145.1    
  (vi) At 12.5 % 146.1    
  (vii) More than 12.5 % but less than 147.1    
14%
  (viii) More than 14%* 148.1    
8. Total [7 (i) to (viii)] should tally with 15 140.1    
(ii) of Part-1(A)
9. (a) Amount of brokerage paid 151.1    

(b) Expenses reimbursed to brokers 152.1

(c) Amount of deposits mobilised by 153.1

payment of brokerage
 

F A statement showing the rates of interest offered as also the rates of brokerage paid on different types of
deposits according to their periods i.e. exceeding 12 months, 24 months, 36 months etc. should also be
submitted along with this part of the return.

* Details should be furnished separately.

Part-1 (C)
  

Region-wise break up of Public Deposits held as on March 31______

(Rs. In Lakhs)

No. of accounts Amount

Region @
Northern    
Eastern    
Central    
Western    
Southern    
Total    
 

@ Region details

Chandigharh, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab &
Northern Region: Rajasthan
Central Region : Chhattisgharh, Madhya Pradesh, Uttar Pradesh & Uttaranchal
  Dadra & Nagar Haveli, Daman & Diu, Goa, Gujrat & Maharashtra

Western Region:
  Andaman & Nicobar Islands, Arunachal Pradesh, Assam, Bihar, Jarkhand,
Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura & West
Eastern Region: Bengal
Southern Region: Andhra Pradesh, Karnataka, Kerala, Lakshadweep, Pondicherry & Tamil Nadu
 

Public Deposits

PART - 2

Particulars of Borrowings and of Deposits not Included in Public Deposits as on

March 31, ______

 
 (Amount in lakhs of rupees)

  Item No. of  
Item
PARTICULARS Code Accounts Amount
No.
1 2 3 4 5
1. Money received from the Central or 221    
State Government(s) or money received
from others, the repayment of which is
guaranteed by the Central or State
Government (s) or money received from
a local authority.
2. Money received from -      
  (a) Foreign Government 222    
  (b) Foreign Authority 223    
  (c) Foreign Citizen or person 224    
  Total [(a)+(b)+(c)] 225    
3. Borrowings from National Housing 226    
Bank
4 Borrowings from -      
  (a) banks 227    
  (b)other financial institutions specified 228    
in the Directions
5. Money received from any other 229    
company
6. Money received from directors/relatives 230    
of directors
7. Money received by a private company 231    
from its shareholders (in case of joint
shareholders, money received from the
first named shareholder only to be
included)
8. Money received from employees of the 232    
company by way of security deposit.
9. Money received by way of security or      
advance from purchasing, selling or
other agents in the course of company’s 233
business or advance received against
orders for supply of goods or properties
 or for rendering of services.
10. Money received by issue of debentures      
secured by mortgage of immovable
properties or convertible debentures 234

Of the above, debentures subscribed by  

banks
[see also item No.(3) of Part -1(A)] 235
11. Money received by way of subscription      
to any shares or secured debentures
pending allotment or money received by 236
way of calls in advance on shares in
accordance with the Articles of
Association of the company so long as
such amount is not repayable to the
shareholders under the Articles of
Association of the company.
12. Money brought in by promoters by way 237    
of unsecured loans in pursuance of
stipulations of lending institutions
13. Commercial Papers 238    
14. Money received from a mutual fund 239    
15. Money received as hybrid debt or 240    
subordinated debt having maturity
period of sixty months or above
16. Total (221+225 to 234+236 to 240 ) 250    
PART - 3

Statement Showing the “Net Owned Funds” As On March 31,________

(Amount in lakhs of rupees)

PARTICULARS Item Code Amount

Item No.
1 2 3 4
1. Paid-up Equity Capital 311  
2. Preference shares which are compulsorily 312  
convertible into equity
3. Free reserves    
  (a) General Reserves 313  
  (b) Share premium 314  
   (c) Capital Reserves (representing surplus on 315  
sale of assets held in separate account)
  (d) Debenture redemption reserve 316  
  (e) Capital redemption reserve 317  
  (f) Credit balance in P & L account 318  
  (g) Reserves under Section 36 (1) (viii) of Income 319  
Tax Act, 1961
  (h) Other free reserves (to be specified) 319.1  
4. Total (311 to 319.1) 310  
5. Accumulated balance of loss 321  
6. Deferred revenue expenditure 322  
7. Other intangible assets 323  
8. Total (321 to 323) 320  
9. Owned Funds (310-320) 330  
10. Book value of investment in shares of :    
  (a) Subsidiaries 341  
  (b) Companies in the same group 342  
  (c) Other housing finance institutions which are 343  

companies. (Details to be furnished in separate  

Annexure)
11 Book value of investments in debentures and bonds    
of :
  (a) Subsidiaries 344  
  (b) Companies in the same group 345  
12. Outstanding loans and advances (including hire    
purchase and lease finance) to and deposits with
  (a) Subsidiaries 346  
  (b) Companies in the same group 347  

(Details to be furnished in separate Annexure)

13. Total (341 to 347) 340  
14. Amount of item 340 in excess of 10% of item 330 350  
above
15. Net owned funds (330 - 350) 300  
 
 PART - 4

Statement showing outstanding loans and advances including inter-corporate loans/deposits as

on
March 31,________

(Amount in lakhs of rupees)

PARTICULARS Item Code Amount

Item No.
1 2 3 4
1. Housing Loans    
(i) Individuals 411  
(ii) Corporate Bodies    
  (a) Companies in the same group 412  
  (b)Companies, firms and proprietary concerns 413  
where directors of the company hold substantial
interest
  (c) Other Corporate Bodies 414  
(iii) Others (to be specified) 415  
  Total housing loans [1 (i) to (iii)] 410  
2. Other loans & advances    
(i) Companies in the same group 421  
(ii) Companies not in the same group 422  
(iii) Directors 423  
(iv) Shareholders 424  
(v) Chief Executive Officer and other employees 425  
(vi) Purchasing, selling and other agents 426  
(vii) Depositors 427  
(viii) Others 428  
  Total [2 (i) to (viii)] 420  
  Grand Total (410 + 420) 430  
 

PART - 4.1
 Statement of Housing Loans to ‘Individuals' (Item Code 411 of Part-4)

(A)

Disbursements (Amount in lakhs of Rupees)

Item Urban Rural Total Of Which to Repaid Outstanding

Category/size of Code during as on March
housing loans   the year 31, ___
(Rs.)
          Sch.caste Sch.tribe    
    N0. Amt No. Amt No. Amt No. Amt No. Amt    
1 2 3 4 5 6 7 8 9 10 11 12 13 14
For acquisition/                          
construction of
new houses  

upto 50,000  

451
Above 50,000 and 452                        
upto 100,000
Above 100,000 453                        
and upto 300,000
Above 300,000 454                        
and upto 500,000
Above 500,000 455                        
and upto
10,00,000
Above 10,00,000 456                        
Sub-total 450                        
(B)
Disbursements

(Amount in lakhs of Rupees)

Item Urban Rural Total Of which to Repaid Outstanding  

Category/size Code during as on March
of housing   the 31, ___
loans (Rs.) year
          Sch Sch tribe    
 
caste
    No. Amt No. Amt No. Amt No. Amt No. Amt      
1 2 3 4 5 6 7 8 9 10 11 12 13 14  
For upgradation                          
including major  
repairs
Upto 20,000 461                          
Above 20,000 462                        
 
and upto 30,000
Above 30,000 463                        
 
and upto 50,000
Above 50,000 464                          
Sub-total 460                          
Grand total
(450+460)