Can Fin Homes is comfortable with the liquidity situation in the NBFC space, MD SK Hota told CNBC TV18
Reserve Bank of India (RBI) has relaxed the securitisation norms for non-banking financial companies (NBFCs), particularly housing finance companies (HFCs). SK Hota, Managing Director of Can Fin Homes, spoke to CNBC-TV18 about how this would affect their business.
"We hope things are improving as far as the economy is concerned and we are in the best part of the year. This is the best period for the HFCs and the housing market which starts with festive season. Things are improving and there is everything positive hereon," Hota said on December 5.
Talking about how the liquidity stress has eased in the NBFC space, he said, "There has to be some positive sentiment as far as this NBFC space is concerned. There has been so many positives either infusing liquidity through the open market operation (OMO) or for that matter the new changes in the securitisation. As far as Can Fin is concerned, we are comfortable with liquidity. It is a cycle that once in a while these sort of levels are positive for the industry."
"From September last week onwards, the rates have gone up but it has been very positive for Can Fin Homes, we have been in a position to pass on those rising costs to the borrowers. The competition has eased so we have been in a position to gain in terms of the yield as well," said Hota.
With regards to the financial performance, Hota said, "When we compare year-on-year (YoY) – you cannot look at the numbers on a quarter-on-quarter (QoQ) basis – certainly the financial year 2019 will end with better numbers compared to the previous year."Source: CNBC-TV18