Inclusive Housing – Regulatory
and Policy Framework
NHB-APUHF International Conference, New Delhi, April 11, 2013
Subrata Dutta Gupta, Principal Financial Officer, IFC
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Presentation Outline
A
Providers
B
Some Questions
C
IFC and Affordable Housing
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Various Providers of Housing Finance in India
NHB
Development Financial
Institutions
Financial
Institutions
Non Banking Finance
Companies
NABARD
Housing Finance Companies
Micro Housing Finance
Companies
Other NBFCs
Microfinance Institutions
Private Sector Banks
Scheduled Commercial Banks
Public Sector Banks
Co-operative Banks
Other Institutions
Others
1.
Scheduled Urban Cooperative Banks
2. District Co-operative
Banks
3. Scheduled State Cooperative Banks
Agriculture and Rural
Development Banks
Primary Land Development
Banks
Apex Co-operative Housing
Societies
Housing Societies
Non Banking Non Financial
Companies
Trusts
Unincorporated Bodies
Association of Persons
NGOs
LLPs
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BORROWERS
Banks
Some questions on Regulatory & Policy Framework
We can talk of many but for the sake of focus let us consider
only seven:
1. How best can land be made available in the peripheries of
metros and large cities at affordable prices?
2. Can we take a relook at our building codes? – with technological
advancement it is now globally proven that we can reduce
construction costs without compromising on any standard=>
better affordability across the spectrum and larger number of
units produced
3. Delays in obtaining clearances by developers only leads to
increased costs – can we work with one state government to try
to see how the clearances process could be expedited?
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Some questions on Regulatory & Policy Framework
4. Could we accord an “Infrastructure” status for Affordable Housing
5. How do we revive the securitization market and introduce other
market instruments which will ensure a steady and sustainable supply
of long term funds?
6. Rental Housing on a large scale can act as huge boon for many –
migrant workers, students. How do we promote significant
development in this space?
7. With increasing global warming, what do we as practitioners do to
promote the development of “green” buildings across all price
ranges?
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IFC’s Housing Finance Strategy for South Asia Region
Regulatory
Environment
Construction
Finance
Advisory /
Investment
Services
Supportive Regulatory
Environment
•
•
•
•
Policy Intervention
Incentives
Urban Planning
Laws / Regulations
Housing Finance
• Lower and Lower
Middle Income
segments
• New Products (HMF)
Housing
Finance
Construction Finance
•
•
•
•
Long Term
Funds
Home Builders
Land / Titling
Infrastructure
Scale
Long Term Funds
• L/T Funding
• Local Currency
• Capital Markets
Development
Advisory Services has led the way in unlocking market potential across the housing ecosystem.
• Through stakeholder engagement, IFC partnering with NHB (regulator) across a range of advisory and investments.
• IFC has emerged as a market leader in promoting demonstration investments in the affordable housing sector; the last
2-3 years has seen emergence of 5-6 HFCs focused on LMI segment. IFC is exploring investments in private developers.
• IFC is attempting to bridge the gap between public-private, developer-financier and regulator-practitioner.
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IFC – South Asia: Some examples of Housing Finance Projects
South Asia Clients
Project Description and Focus Area
Aadhar Housing Finance Private
Limited
IFC investee focused on India’s poorest low income states. New mortgage
products; responsible finance in market outreach, customer awareness, product
and pricing transparency, staff training on ethical collections
Dewan Housing Finance Limited
Straight loan and a loan to promote “green” mortgages#
# - awaiting approval from RBI
XXX Limited
Straight loan for affordable housing mortgages in Low Income States of India#
# - awaiting approval from RBI
Value Budget Housing Corporation
and
XXX Limited
Affordable Housing Developer Financing
ADVISORY PROJECTS
Equitas Housing Finance Private
Limited
India’s first registered housing finance company under an MFI parent - Equitas MFI
one of India’s largest MFIs; incorporating market outreach/customer awareness
and product design.
Janalakshmi Financial Services
Private Limited
Market segmentation by poverty level; financial products include housing finance,
pensions, savings, SME lending. Setup financial & debt counseling centers to
increase financial awareness.
Grameen Financial Services
Private Limited
Grassroots incremental housing program includes transparency on good
construction practices to clients along with housing microfinance loans to allow
more informed choices.
Ujjivan Financial Services Private
Limited
IFC investee focusing on new credit appraisal processes for informal sector
clients, moving outside of Southern region to frontier regions, branding on RF
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lending practices.
Thank You
Subrata Dutta Gupta
Principal Financial Officer
and Head – IFC, Kolkata
Tel. +91 33 4401 1011
E-mail: SDuttagupta@ifc.org
IFC – Kolkata Office
2nd Floor, Mani Boutique
4A, Nandlal Basu Sarani
(Little Russell Street)
Kolkata – 700071
Tel: +91 (33) 4401-1000
Web: www.ifc.org
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