IIFL Home Finance invests Rs 250 mn for 5% stake in RDCL

IIFL Home Finance announced on that it would be investing Rs 250 million to acquire a 5 per cent stake in the RMBS Development Company consortium as a founding member. A group of financiers, which includes ICICI Bank, HDFC Bank, Bajaj Finance, Shriram Housing Finance, Aditya Birla Housing Finance, Hero Housing Finance, and Grihum Housing Finance, had partnered with National Housing Bank and LIC to establish RMBS Development Company (RDCL) with an investment of Rs 5 billion. According to a statement by IIFL, RDCL aims to rejuvenate the residential mortgage-backed securities (RMBS) market and unleash its potential for funding affordable housing. Monu Ratra, the chief executive officer of IIFL Home Finance, stated that The RMBS platform under the aegis of the National Housing Bank (NHB) would offer the much-needed liability diversification and improvement of cost of funds for all mortgage players. As of December, IIFL Home Finance had assets under management totalling over Rs 320 billion, which had grown at a rate of 38 per cent over the previous eight years.