Housing finance stocks in focus

LIC Housing Finance, GIC Housing, Dewan Housing, Gruh Finance and Indiabulls Housing were up 3% to 4% on the BSE.

Shares of housing finance companies were in focus and trading higher in the range of 2%-4% on the bourses after the Cabinet on Wednesday cleared Housing for All by 2022 — a scheme with an interest subvention of 6.5% on housing loans to the economically weaker section (EWS).

At 1002 hours, LIC Housing Finance (4.4% at Rs 433), GIC Housing Finance (up 4% at Rs 218), Dewan Housing Finance (3.9% at Rs 430), Gruh Finance (3.4% at Rs 241), Indiabulls Housing Finance (2.7% at Rs 598), Can Fin Homes (2% at Rs 714) were up 2%-4% on the BSE. Housing Development Finance Corporation (HDFC) was up 1% at Rs 1,212.

“Under the credit-linked interest subsidy component, interest subsidy of 6.5% on housing loans availed up to a tenure of 15 years will be provided to economic weaker sections/lower income group (EWS/LIG) categories, wherein the subsidy pay-out on net present value (NPV) basis would be about Rs 2.3 lakh per house for both categories,” said an official statement. CLICK HERE TO READ FULL REPORT