Housing finance industry situation

Q: I am planning to get into the housing finance business, how is the industry doing now?

Harilal, Delhi-NCR

20th October 2013

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Well, there is no doubt about that, finance companies such as LIC Housing Finance and Housing Development Finance Corporation, have owned the major share over the banks. This trend has been prevalent for the past few years. It is said that the disbursal of home loans by home finance companies will grow by 19% by the next financial year. The industry has seen a YoY growth of 20% June 2013 report. Where banks recorded 17% and home finance companies stood at 26%.

Ayesha, Delhi-NCR

20th October 2013

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According to the numbers projected here, are we to believe that housing finance companies gaining more when compared to banks?

Rajesh, Delhi-NCR

20th October 2013

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But wasn’t there a decline in the net interest margins? Is it stable now?

Preeti Kher, Delhi-NCR

20th October 2013

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That is true, I too heard that this business is not very stable and even that there has been a decline in net interest margins, however, it is also expected that due to this decline in net interest margins and increasing credit provisions there will be a reduction of 20-30 basis points in profitability for home finance firms. The growth is forecasted at 24% for housing finance firms and banks are expected to grow at 14%. To make this better this trend is poised to continue for at least for 5 years.

N.Mathur, Delhi-NCR

20th October 2013

Hello, it is a good choice of business if you have enough disposable money. The industry is expected to grow the coming years to greater heights. This is because of the increase in demand and supply of housing projects. As of June 30, 2013 the total housing credit outstanding in India, was over Rs 7.99 lakh crore. As of March 31, 3013 it stood at Rs 7.59 lakh crore. So the annualised growth rate as of June 30, 2013 was at 21% as compared to the 2012-13 period which was at 18%.

Sameer Khan, Delhi-NCR

20th October 2013

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