Expect government to continue with its thrust on affordable housing and in that regards give more tax breaks in Budget 2018, said Gagan Banga, VC & MD, Indiabulls Housing Finance.
Indiabulls Housing Finance reported a 55.38 percent rise in consolidated net profit to Rs 1,167.73 crore for the third quarter ended December 31. Its revenues in Q3 grew by 36.65 percent to Rs 4,105.66 crore.
Speaking about the company’s strong performance and the outlook going forward and also the expectation from the Budget 2018, Gagan Banga, VC & MD, Indiabulls Housing Finance said they expect government to continue with its thrust on affordable housing and in that regards give more tax breaks.
He said every month since last February, the government has been making policy decisions with regard to affordable housing and they may use the Budget as well to focus more on that, said Banga.
With regards to business per se, he said the loan growth is basically a function of macro and the environment around demand and affordable housing.
Government has expanded the PMAY scheme, which bodes wells for housing loan growth. So, today the affordability for the common man to buy a house and take home loan is effective, he said.
The effective home loan price for Rs 25 lakh home loan with combination of tax break and subsidy of the Pradhan Mantri Awas Yojana (PMAY) is around 30 basis points.
He said post demonetisation and GST, the SME industry faced many challenges but they now turned out to be credit worthy.
So, expect the SME sector lending opportunity to explode over 3-5 years, said Banga.
He also specified that for the company which was slowly converting into digital technology play by converting home loans digitally, the endevour would be to deliver loan against property (LAP) on an incremental basis also digitally.He also said the focus of the company would be to grow more organically.