Kolkata: The National Housing Bank (NHB) today said that American International Group (AIG), the bankrupt financial giant now bailed out by the Federal Reserve, is still committed to take part in its proposed mortgage guarantee outfit.  

"As of now, AIG is still committed to the investment in the proposed mortgage guarantee venture,"  NHB sources told PTI.   Earlier this month, AIG went bankrupt which prompted the US Federal Reserve to come forward with an USD 85 billion bail out package in exchange for 79.9 per cent equity stake in the company.  

NHB Chairman and Managing Director S Sridhar had earlier said that the proposed venture would have three overseas partners.  NHB would have the majority 43 per cent stake in the venture followed by AIG with 41 per cent share. International Finance Corporation (IFC) and American Development Bank (ADB) were to have eight per cent stake each in the proposed venture.  

Sources said that IFC and ADB were also still committed to the venture, a Non Banking Financial Corporation (NBFC), the process of setting up of which was currently on.  "The process of putting up the venture is still on. But, when will it go onstream? I can't say that now. We will have to check how things turn out," Sridhar told PTI.  

As per the RBI guidelines, it requires a minimum of Rs 100 crore capital to set up a mortgage guarantee outfit.

Source : PTI