Market cautious on HFCs; concerns over growth, asset quality weigh

The major players all seem confident of fast revival in demand once conditions normalise

Mortgages are a good sign of economic conditions. Buying a house is a high-ticket decision. Lower interest rates are a stimulus, though loans have long tenures and floating rates. Favourable demographics and high urbanisation should drive the industry. Against that, there were job losses in FY21, with up to 97 per cent of Indians seeing a decline in income.

Leading mortgage provider, HDFC, had Rs 10,446 crore in interest income from the mortgage business in Q4FY21, against Rs 10,963 crore a year ago and Rs 10,710 crore in Q3FY21. It had finance costs of Rs 6,566 crore versus Rs 7,662 crore