The National Housing Bank (NHB) has agreed to acquire a 12.5 per cent stake in Mahindra group company, Mahindra Rural Housing Finance Ltd (Mahindra Home Finance) for Rs 5.8 crore.

In this regard, a subscription agreement between the two companies has been signed, under which, NHB would participate in the first two years capital raising programmes of Mahindra Home Finance, which is a brand name of Mahindra Rural Housing Finance.

Mahindra Rural Housing Finance is a wholly-owned suibsidiary of Mahindra & Mahindra Financial Services Ltd (MMFSL), which has been set up with the objective of meeting the housing finance requirements of rural and semi-urban customers.