Funding costs, growth worries hit stocks of housing finance companies

While 30% of loans taken by eight firms mature in the near term, 45% of the book is financed through market borrowings

The stocks of housing finance companies (HFCs) are in a bear phase for the third consecutive trading session. 

Adding to their earlier losses, HFCs shed between 5 and 24 per cent during Tuesday's session. 

The key issues for the market are the ability of HFCs to maintain their margins and improve loan growth in the near term.

Firstly, shows that, on an average, 31 per cent of borrowed funds of eight HFCs will be maturing in the near term and this indicates the extent of elevated funding costs. 

With higher interest and yields trajectory, cost of newly issued, renewed and