IIFL Home Finance To Invest Rs 25 Crore For 5% Stake In RDCL

IIFL Home Finance on Thursday said it is investing Rs 25 crore to pick up a 5% stake in the RMBS Development Company consortium as a founding member.

A clutch of financiers, including ICICI Bank, HDFC Bank, Bajaj Finance, Shriram Housing Finance, Aditya Birla Housing Finance, Hero Housing Finance, and Grihum Housing Finance, have tied up with National Housing Bank and LIC to create RMBS Development Company Ltd. with an investment of Rs 500 crore.

RDCL is aimed at revitalising the residential mortgage-backed securities (RMBS) market and unlocking its potential for financing affordable housing, according to a statement by IIFL.

"The RMBS platform under the aegis of the National Housing Bank (NHB) shall provide the much-wanted liability diversification and improvement of cost of funds for all mortgage players," Monu Ratra, chief executive officer of IIFL Home Finance, said.

As of December, IIFL Home Finance had over Rs 32,000 crore of assets under management, and the same has grown at a rate of 38% over the last eight years.