HFCs loan book to grow 8-10% in FY22, stress levels to stay elevated: Icra

While HFCs are expected to regain their profitability and growth trajectory in FY22, rising Covid-19 infections and localised lockdowns remain a concern area

Building on demand revival in late 2020 and early this year, the loan book of Housing Finance Companies (HFC) in India, is expected to grow at 8-10 per cent in Fy22, according to Icra.

The on-book portfolio growth moderated for HFCs in 9M FY2021 (compared to Mar-20) to 4.3 per cent (excluding the portfolio of one large player, which had sizeable write-offs) from portfolio growth of 6 per cent year-on-year in FY2020.

However, with the revival in demand for housing credit in the industry during the past two quarters, most of the HFCs have already reached near pre-Covid level disbursements.