Housing Finance Companies growth to remain subdued: Care Ratings

Funding challenges and slow GDP growth continue to spoil the show

Repo-linked loans: Home buyers to see higher outgo in initial years

Nidhi Rai Mumbai
CARE Ratings has stated that the growth in the housing finance companies (HFCs) loan book is expected to remain subdued due to funding challenges and lowered consumption due to slowing GDP growth.
“Most HFCs are looking to conserve liquidity and correcting asset and liability management through sell downs and slowing disbursements. Further, moderation in the loan book growth of non-banks has curtailed the growth of interest margins.” 
It said: “Overall, the growth in HFCs is expected to remain under pressure as the effect of the relief-measures made by the government on the liquidity front, are yet to unfold. The slowdown in the real estate sector coupled with higher risk perception of refinancing developers could impact the asset quality

First Published: Dec 30 2019 | 8:59 PM IST

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