HFCs asset growth halves to about 10% in H2FY19 on fund crunch: Crisil

Annual growth in AUM pegged at 12-14% in FY20 and FY21, from about 15% seen earlier; growth in first half of FY19 was 21%

With the markets and banks curtailing fund supply, the growth in assets of housing finance companies (HFCs) in India will dip to 12-14 per cent in FY20 and FY21, from over 15 per cent seen earlier, according to rating agency Crisil.

The liquidity challenges that followed the debt default by Infrastructure Leasing & Financial Services (IL&FS) in September 2018 pulled down growth in assets under management (AUM) of HFCs in the second half of fiscal 2019, a Crisil study shows. 

Fiscal 2019 was a year of two contrasting halves. The first half saw stable growth and comfortable access to funding, with assets