CAG flays housing finance companies

Statesman News Service
NEW DELHI, March 10: At a clip the existent estate, particularly the lodging segment, is showing a rapid growth, the public sector lodging finance marketplace is on a downslide. The five cardinal lodging finance companies (HFCs) audited by the Comptoller and Hearer General (CAG) did not dwell up to their expected function in lodging finance, Deputy Accountant and Hearer General, Multiple Sclerosis Bharti Prasad, today said. This at a clip the Budget 2008-09 provided Rs 1,200 crore in the National Housing Depository Financial Institution to refinance trading operations in the rural lodging sector. The HFCs under reappraisal were HUDCO, Depository Financial Institution of Baroda Housing Finance Ltd, Central Depository Financial Institution Home Finance Ltd, IDBI Home Finance Ltd and PNB Housing Finance Ltd.
Housing loan expenses in the state rose from Rs 23,858 crore in 2001-02 to Rs 86,034 crore in 2005-06, recording a growing of 261 per cent. However, the cardinal populace sector Housing Finance Corporation (HFC) share of the marketplace decreased from 10.19 per cent to 2.63 per cent during this period, the CAG study on Housing Finance, tabled in Parliament on 28 February, said. Though most of the HFCs were their sister concerns, the scheduled commercial Banks increased their marketplace share from 35.90 per cent to 68.14 per cent, slowly driving the little HFCs out of the market, Multiple Sclerosis Prasad said.