10 banks to pick up stakes in Central Electronic Registry

KOLKATA - About 10 large banks would pick up stakes in the proposed Central Electronic Registry (CER), which would track mortgages in the home loan market and help check fraudulent activities.

The CER will be co-promoted by the National Housing Bank.

“We are in the process of setting up the Central Electronic Registry. About 10 banks are likely to pick up stake in the venture. The government has already committed Rs.25 crore for the purpose in the Budget,” said S. Sridhar, NHB chairman and managing director.

Sridhar told reporters on the sidelines of banking conclave here that he is chairing the working group set up by Indian Banks Association for setting up the CER.

He said NHB would be the single largest stakeholder, but its stake would be below 50 percent.

NHB is also heading a project to set up valuation standards of real estates by banks and financial institutions, and a draft on it is likely to be released in the next one month, he said.

NHB is also setting up a mortgage guarantee company, which would provide credit guarantees to housing finance companies and commercial banks on behalf of clients seeking housing loans.

This company is expected to be set up in the next two months, Sridhar said.