Affordable housing has been the lone bright spot in this doom and gloom and has contributed to both realty sales as well as to the AUM growth of banks and HFCs servicing this segment.
HDFC remains a key beneficiary of a liquidity shift towards strong and top quality names while most housing finance companies on the street stand crippled by the tightened liquidity
The move could enable such HFCs, which have lately been cash-strapped, to mobilise funds.
A market-based financial system is always welcome, but India would do well not to lose sight of the 2008 crisis
"I don't think it is a matter of concern for most of the housing finance players. Maybe one or two or three small players may find it a little difficult because they may need to raise capital," said Mistry.
Sakshi Batra does a 3 Point Analysis on the current funding situation, its likely impact on growth, asset quality and profitability of housing finance companies.
The Department of Economic Affairs (DEA) fears a “significant default” from large non-banking finance companies (NBFCs) and housing finance companies (HFCs) in the next 6 weeks if additional liquidity support is not forthcoming.
Source and cost of funding are vital for NBFCs. While the cost is going up, there seems to be some pressure on source of funds at the moment.
Sakshi Batra is in conversation with Santosh Nair, Editor of Moneycontrol, to find out what’s worrying investors, and how the markets could fare in the coming weeks.
Even as near-term outlook remains cloudy for housing finance companies, some stocks deserve a closer look.
Most of this incremental capital requirement would be for the small HFCs, including those operating in affordable housing space, it said.
According to a Crisil report, new pure-play affordable home loan players have seen their assets under management jumping 50 per cent to Rs 23,000 crore as of March 2017, from Rs 15,000 crore in March 2016.
The whole world might be worried about IT and pharma amid regulatory hurdles as well as rising rupee but fundamentally they remain a strong play, Sheth told CNBC-TV18.
Going by the buzz on D-Street, we have collated a list of top ten sectors from various experts which are likely to remain in the spotlight in FY2018.
Credit growth for the PSU banks is expected to be weak for the next fiscal year not only because of their limited ability to lend money but also because the capex demand is completely absent, said Suresh Ganapathy, Banking Analyst, Macquarie Cap Sec.
Housing finance companies (HFCs) are elated with the Securities and Exchange Board of India‘s move to hike the investment limit for debt mutual funds to 15% from 10% earlier.
Debt mutual funds were allowed to have an exposure of only up to 10 percent to housing finance companies. This has been increased to 15 percent with the immediate effect subject to certain conditions.
Debt mutual funds can now invest up to 15 percent of their total net assets in housing finance companies with Sebi easing the regulations in this regard.
In a bid to push the housing and real estate sector, the Union Budget 2017-18 granted infrastructure status to the affordable housing sector thereby making higher capital available for developers and financial institutions to push the latent demand for housing.
With banks reducing their interest rates, housing finance companies business is likely to be affected and they will be forced to realign their strategies, says a report.