It is quite possible that banks would miss their target for rural housing finance funding this fiscal.

According to a source having knowledge on the issue, the National Housing Bank (NHB) has asked banks to increase the pace of providing finance in rural areas so as to atleast finish closer to the target if not achieve it by fiscal end.

"It would be difficult to achieve the annual target as banks fail to match the expectation so far," said a senior executive with an HFC, who attended the meeting. NHB, RBI's subsidiary to promote housing, has discussed this issue with the lenders at a meeting in New Delhi recently. "We told banks to step up their acts," NHB chairman and managing director RV Verma said.

Banks as well as housing finance companies have been given the target of providing finance to rural areas under the Golden Jubilee Rural Housing Finance Scheme. The target for this fiscal was set for funding 3.75-lakh units.