SRG housing loans worth Rs 400 crore may be fictitious: National Housing Bank

The National Housing Bank raised concerns over SRG Housing Finance, identifying potentially fictitious loan accounts. Investigations have revealed that around one-third of the lender's loan portfolio consists of these phantom accounts. The inquiry also indicated possible manipulation regarding non-performing assets and the practice of evergreening. Funds linked to these dubious accounts were allegedly redirected to promoters' entities. This issue surfaces amid heightened scrutiny on smaller housing finance firms.