• The Sub-Group on Housing Finance for the Seventh Five Year Plan (1985-90) identified the non-availability of long-term finance to individual households on any significant scale as a major lacuna impeding progress of the housing sector and recommended the setting up of a national level institution.
• The Committee of Secretaries considered’ the recommendation and set up the High Level Group under the Chairmanship of Dr. C. Rangarajan, the then Deputy Governor, RBI to examine the proposal and recommended the setting up of National Housing Bank as an autonomous housing finance institution. The recommendations of the High Level Group were accepted by the Government of India.
• The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Hon’ble President of India on December 23, 1987, became an Act of Parliament.
• The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing.
• In pursuance of the above, NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.
• Reserve Bank of India contributed the entire paid-up capital.
• The general superintendence, direction and management of the affairs and business of NHB vest, under the Act, in a Board of Directors.
• The Head Office of NHB is at New Delhi.

The Preamble of the National Housing Bank Act, 1987 describes the basic functions of the NHB as –
“… to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto …”

“Promoting inclusive expansion with stability in housing finance market”

“To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate income housing ”

NHB has been established to achieve, inter alia, the following objectives-

• To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.
• To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.
• To augment resources for the sector and channelise them for housing.
• To make housing credit more affordable.
• To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act.
• To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country.
• To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.

NHB is a lean, officer oriented, professionally managed institution with its headquarters in Delhi and offices in Mumbai, Hyderabad, Bangalore, Chennai, Kolkata and Ahmedabad. It has 121 professionals professionals at different levels. NHB is committed to pursuit of excellence through innovation, doer work culture and contemporary work practices with technology intervention. It has the following Departments, apart from NHB RESIDEX Cell for handling residential index activities –

• Department of Regulation and Supervision
• Refinance Operations Department
• Project Finance and Technology Promotion Department
• Resource Mobilization and Management Department
• Risk Management Department
• Market Research, Consultancy and Policy Department/Business Planning and Promotion Department
• Credit Guarantee Fund Trust Cell
• Information Technology Department
• Legal Department
• Administration and Human Resource Department
• Premises Department
• Accounts Department
• All Audits Department
• Rajbhasha
• Board and MD Secretariat
• Vigilance Department