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The broader consensus among investors seems to be that income growth among the population needs to improve for real credit demand to pick up.

Chart of the Day: Falling share of HFCs in home loan market

While market share of public sector banks was stable, the private sector banks saw a significant increase in share

MC Explains: What do RBI's new draft rules on loan penal charges say?

RBI Governor Shaktikanta Das in February said that the central bank will issue draft guidelines for monitoring the penal charges levied by financial entities on consumers on loans

NBFCs' collection efficiency to remain strong, says ICRA

Given the healthy collection trend, the credit quality of the ICRA-rated securitised instruments is expected to remain stable, the ratings agency said

Q3 earnings preview: NBFC margins may shrink amid robust growth

Home and vehicle financiers are set to report strong disbursement growth even as the cost of funds rises sharply for most NBFCs

Home loan lenders must tread carefully in developer loans as they look for margin boost

Investors are taking an optimistic view on HFCs, both on the growth front due to a housing market revival and on asset quality, with troubled project loans getting resolved.

Housing finance companies likely to grow at 10-12% in FY23: Report

The upwards revision of the growth of HFCs was in expectation of a continued improvement in disbursements.

Fairfax-backed IIFL Finance looks to sell stake in Housing Finance unit

Canadian billionaire Prem Watsa-backed Fairfax Group and the UK government’s development finance institution CDC Group plc are key investors in IIFL Finance, holding 22.3 percent stake and 7.7 percent stake, respectively. With over 2,563 branches, IIFL Finance and its subsidiaries, IIFL Home Finance Limited and Samasta Microfinance, are focussed on retail lending.

Pickup in disbursements, improving collection efficiencies to help securitisation volumes: ICRA

Monthly collection efficiency across asset classes improved materially from the lows of May 2021 and the incremental slippages declined across asset classes, Icra said.

Securitisation volumes likely to bounce back in FY22: Icra

The agency’s vice president and group head (structured finance ratings) Abhishek Dafria said the collections across all asset classes have bounced back sharply since the dip seen in April 2020 following the nationwide lockdown.

Looking to buy a house this festive season? Here are the cheapest home loans

Public sector banks offer the lowest rates, but leading housing finance companies are not far behind

Is LIC Housing Finance’s strong Q1 earnings growth sustainable?

Provisioning is likely to increase for LICHF, given challenging times, and will weigh on earnings and compress return ratios in FY21

Interview | Srei Infrastructure's Hemant Kanoria says liquidity measures for NBFCs are yet to yield results

Hemant Kanoria pointed out that fear of defaults is causing banks to refrain from fresh lending

'Budget 2020 should focus on reviving consumer demand and corporate investment cycle'

Supported by capital infusion and increased provisioning on stressed loans, we expect the remaining PSBs to also exit the prompt corrective action framework of the RBI and most of them to turn profitable in FY2021.

Two interesting insights from RBI’s financial stability report

Just like the market rally, the insipid credit growth in the commercial sector is being fuelled by a few firms.

Cabinet approves Partial Credit Guarantee Scheme to help NBFCs, HFCs with liquidity

Move to provide stimulus to the real estate sector and the economy at large by enhancing credit flow 

NBFC/HFC bankruptcy provisions positive for banks: Moodys

The government recently empowered RBI to refer stressed NBFCs and HFCs with assets worth of at least Rs 500 crore to insolvency courts after notifying Section 227 of the Insolvency and Bankruptcy Code.

SBI Chairman Rajnish Kumar calls for cutting HFCs exposure to developer loans

He added that there was space for new HFCs to enter the market but on two conditions. "They should be 100 percent housing finance companies and they should not take deposits," he said.

Ideas for Profit | HDFC’s results shine during uncertain times, making it a buy

The housing finance segment is currently plagued with multiple issues including funding constraints, slower growth and stringent regulations. This makes investors ponder – is it worth considering HDFC, the largest housing finance company (HFC) at this juncture? The answer is definitely yes

NBFCs, HFCs raised Rs 2.4 lakh crore via sale of loans: ICRA

For current financial year, the sale of loans through securitisation is likely to be above Rs 2 lakh crore, fuelled by the government’s partial credit guarantee scheme and targets laid out for public sector banks to disburse funds under the facility.

Weekly tactical pick: LIC Housing Finance

LICHF’s stock is trading close to its 52-week low price. It is valued at 0.9 times FY21 estimated book value which is very attractive, given steady mid-teen earnings growth and RoE of 15-16 percent

NBFC/HFC lending to real estate players down 48% in FY19 at Rs 27,000 crore: JLL

With banks not willing to fund real estate developers, the consultant said, the dependence of developers on NBFCs/HFCs had increased over the years.

Markets | Will banks soon be able to transmit lower interest rates to borrowers?

Bank deposit growth is looking up and the credit-deposit ratio is coming down