Post the RBI policy, it is the housing finance companies which are dominating the gainers list on the BSE. LIC Housing, GIC Housing, Repco Home, Can Fin Homes, HDFC, Indiabulls Housing, PNB Housing Finance, HUDCO are all up in the green.
RBI rationalised the risk weights on housing loans.
- Currently, differential risk weights are applicable to individual housing loans, based on the size of the loan as well as the loan-to-value ratio (LTV).
- RBI has decided to rationalise the risk weights and link them to LTV ratios only for all new housing loans sanctioned up to March 31, 2022.
- This measure is expected to give a fillip to the real estate sector.