<p>Earlier, State cooperative banks (StCBs) and central cooperative banks (CCBs) were allowed to extend housing finance up to 10 per cent of their total loans and advances.<br />These banks, with exposure in excess of the new limits, have been asked to initiate steps to bring it down to the revised limits within six months.<br /><br />"It has been decided that the exposure of StCBs and CCBs to housing finance would, henceforth, be limited to 5 per cent of their total assets, as against 10 per cent of their total loans and advances," a RBI notification said.<br /><br />The assets of StCBs and CCBs may be reckoned, based on the audited balance sheet as on March 31 of the preceding financial year, it said.<br /><br />The decision would curtail exposure of such lenders to real estate.<br />The revised limit of credit exposure for housing would be applicable with immediate effect.<br />The StCBs and CCBs were earlier allowed to give house loan to an individual borrower up to Rs 20 lakh. In case of a bank having a net worth of Rs 100 crore and above, the limit was Rs 30 lakh.</p>
<p>Earlier, State cooperative banks (StCBs) and central cooperative banks (CCBs) were allowed to extend housing finance up to 10 per cent of their total loans and advances.<br />These banks, with exposure in excess of the new limits, have been asked to initiate steps to bring it down to the revised limits within six months.<br /><br />"It has been decided that the exposure of StCBs and CCBs to housing finance would, henceforth, be limited to 5 per cent of their total assets, as against 10 per cent of their total loans and advances," a RBI notification said.<br /><br />The assets of StCBs and CCBs may be reckoned, based on the audited balance sheet as on March 31 of the preceding financial year, it said.<br /><br />The decision would curtail exposure of such lenders to real estate.<br />The revised limit of credit exposure for housing would be applicable with immediate effect.<br />The StCBs and CCBs were earlier allowed to give house loan to an individual borrower up to Rs 20 lakh. In case of a bank having a net worth of Rs 100 crore and above, the limit was Rs 30 lakh.</p>