NHB-Led RDCL To Issue Rs 10,000-12,000-Crore Securities In FY26

Residential Mortgage-Backed Securitisation Development Co., promoted by National Housing Bank, plans to issue seven to eight listed residential mortgage-backed securities worth Rs 10,000 to 12,000 crore in the current financial year, Managing Director Sanjay Shukla said.

On Monday, NHB led RDCL listed the first-ever residential mortgage-backed security, worth Rs 1,000 crore at a monthly coupon of 7.26% on the National Stock Exchange. The PTC will mature in nearly twenty years.

The pass-through certificates are backed by a pool of housing loans originated by LIC Housing Finance. The total pool size is Rs 1,112.05 crores and the issue was fully subscribed.

RDCL is also in the process of issuing another tranche of Rs 1,000 crore by next month, Shukla told reporters at the listing ceremony.

NHB is talking to all housing finance companies and encouraging them to participate in this instrument.

RDCL is promoted by NHB to develop the residential mortgage-backed securities market in India. It aims to provide a platform for securitising residential mortgages and creating a more liquid and transparent RMBS market, benefiting both housing finance companies and institutional investors.

So far, NHB owns a 39% stake in the company and LIC Housing Finance holds 10%, while the rest of the 51% is with others. RDCL will basically facilitate these instruments like a special purpose vehicle, Shukla said.

Separately, other stakeholders in the company are planning to sell their stake in RDCL and may sell it to State Bank of India and others within the next six months, Shukla said.

“Other shareholders will do a price discovery method… Because when we were setting up the company, there were 11 shareholders. Now we'll try to reduce the number of shareholders,” he said.

While banks will maintain their stake in the company, housing finance companies may look to sell. At any point in time, NHB will maintain its minimum 26% stake in RDCL.

NHB plans to raise Rs 55,000 to Rs 60,000 crore by way of bond issuances in the current financial year, as it expects its disbursements to cross Rs 50,000 crore in the same period.

For the financial year ended March 31, 2025, Shukla said that NHB had raised Rs 48,000 crore through bonds.

When asked if NHB is also looking to approach the government to seek approval for zero-coupon bonds, Shukla said that they are planning to and may look to issue these bonds by the next Union Budget.

"We have approached. We are also in the process of writing to the ministry. We will initiate just before the budget next year," Shukla said.