Page 3 - Housing Finance

HDFC Bank disburses Rs 48k crore home loans in Q2, Casa ratio falls

The bank's retail loan book surged 85 per cent over the previous quarter and 111.5 per cent over the same period year ago

We want to be No. 1 in affordable housing by FY26: Ravi Subramanian

RAVI SUBRAMANIAN, managing director and chief executive officer, feels that the sector is in a sweet spot, and capital will not be a constraint for the better-run players

RBI governor Shaktikanta Das asks NBFCs to strengthen governance standards

Reserve Bank Governor Shaktikanta Das on Friday asked non-banking financial companies (NBFCs), including housing finance companies, to strengthen governance standards and assurance mechanisms. The governor held a meeting with MD & CEOs of select large NBFCs. Government NBFCs and housing finance companies (HFCs) also participated in the meeting, the RBI said in a statement. These entities constitute nearly 50 per cent of the total assets of all NBFCs, including HFCs. Acknowledging the important role played by the sector in delivering credit to the unbanked and underserved areas, Das advised that NBFCs and HFCs need to remain alert to avoid any complacency during good times. "The governor highlighted the need for further strengthening the governance standards and assurance mechanisms viz. compliance, risk management and internal audit in these entities," the central bank said. Discussions were also held on diversifying the resources for NBFCs and HFCs to contain the increasing ...

Repco Home Finance expects around Rs 14,000 cr AUM this FY: MD & CEO

Housing loan finance company Repco Home Finance expects to manage assets under management (AUM) of around Rs 14,000 crore by the current financial year, a top official said. The Tamil Nadu-based company was managing AUM of around Rs 12,400 crore at the beginning of the year, Managing Director and CEO K Swaminathan said. "As regards AUM, I think we were around Rs 12,400 crore in the beginning of the year. We plan to reach somewhere around Rs 14,000 crore by the current year-end. That is our plan of action. When the momentum happens, especially the second and third quarters are normally the peak quarters for the company," Swaminathan said at the Q1 FY24 earnings conference call recently. During the second and third quarters, Swaminathan said, "I expect the book growth will also be more than the 9 per cent growth that we did in the first quarter." "Definitely, I think we will be able to reach the number of around Rs 14,000 crore. That is our plan of action for the year-end" he ...

LIC Housing Finance to aggressively use OTS, ARC for loan recoveries

The company had written off Rs 544.71 crore during FY23, in comparison to just Rs 23.03 crore written off in the previous year

LIC Housing Finance hits 10-month high on 43% YoY net profit growth in Q1

In the past one year, this non-banking financial services (NBFC) stock has surged 16 per cent, as against a 12 per cent jump in the S&P BSE Sensex

Indiabulls Housing Finance zooms 9% on dividend proposal, fund raising plan

The Board has approved to raise up to Rs 35,000 crore via non-convertible debentures

Poonawalla Fincorp sells controlling stake in housing fin arm for Rs 3K cr

Poonawalla Fincorp Wednesday said it has completed the sale of a controlling stake in its housing finance arm Poonawalla Housing Finance to Perseus, a Singapore-based entity affiliated to private equity major TPG Global, for Rs 3,004 crore. The Cyrus Poonawalla Group, more known for its vaccine-making business under the Serum Institute, in a statement said the financial consideration of Rs 3,004 crore is excluding the tax outgoes. With this sale, Poonawalla Housing Finance will cease to be a subsidiary of Poonawalla Fincorp, and Perseus will be holding a controlling stake. Poonawalla Fincorp did not quantify how much remaining holding it will be having. Poonawallah Fincorp managing director Abhay Bhutada said the sale gives them ample growth capital that will help it remain focused on growth-focused consumer and MSME finance.

HDFC-HDFC Bank merger: The story behind success of housing finance behemoth

In a press conference on June 27, HDFC's chairman Deepak Parekh said that the board of these two companies will meet on June 30 to finalise the merger and it will be effective on July 1

NHB asks housing finance cos to adopt early warning signals framework

Regulator for housing finance firms NHB has asked housing finance companies with asset size of over Rs 1,000 crore to adopt an early warning signals (EWS) framework to check financial frauds and also to prevent accounts from turning into non-performing assets. National Housing Bank (NHB), in a recent circular, said analysis of the frauds reported by the housing finance companies (HFCs) has revealed that the reasons behind accounts being identified as fraud accounts are seller impersonation, submission of fake income/ employment documents, submission of fake title deeds, a collusion of the builder and borrower. It has also been observed that such deficiencies are identified only when the borrower stops paying the EMIs after the disbursement of the loans, NHB said. "It has been therefore decided that an Early Warning Signals (EWS) Framework should be adopted by the HFCs so that an alert is triggered before the account turns into non-performing asset (NPA) or declared as a fraud ...

Housing finance company Aviom raises $30 million in a funding round

Housing finance company Aviom has raised USD 30 million (over Rs 246 crore) in a funding round through a mix of primary and secondary investments by Nuveen, a global investment manager. The company is focused on affordable housing sector and the funding will help in expanding its loan book and widen its operations to newer geographies, said its chief executive officer Kajal llmi. With the series D funding, the company plans to extend financial assistance to around 60,000 families additionally in the new fiscal by disbursing around Rs 1,200 crore, she added. The company currently has a customer base of around 50,000. Stephen Lee, senior director & head of Asia at Nuveen's private equity impact investing team, said, Aviom has disrupted micro-mortgage lending landscape by catering to a hitherto underserved segment. This new equity investment will propel Aviom to grow 6-fold by 2026, Lee said. Over the next six months, Aviom looks to increase its monthly disbursement to Rs 150 crore

Sundaram Home Finance to double number of branches giving small biz loans

In October last year, the company made a foray into the small business loans segment

Press Release: ART Housing Finance Wins Three Prestigious Awards

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After two challenging years, good prospects for housing finance NBFCs

In the near-term though, maintaining NIMs in a rising interest rate environment will be a delicate balance given its potential impact on volumes

LIC Housing Finance raises lending rates by 35 bps, cites market conditions

'Good sustenance in home buying', says mortgage lender in statement

PNB Housing Fin opens 'Roshni' branches for affordable housing loans

PNB Housing Finance on Friday said it has opened 'Roshni' branches in various locations, including tier II and III cities, for deepening its customer base in the affordable housing segment. Through its affordable home loan scheme Roshni, the city-based lender has also renewed its commitment towards the government's Housing for All mission, it added. Under this initiative, PNB Housing Finance will offer retail loans to individuals in the range of Rs 5 lakh to Rs 30 lakh. The company's Roshni branches inaugurated in Chennai, Coimbatore, Ghaziabad, Hyderabad, Indore/Ujjain, Lucknow, Mumbai, Nagpur, Pune, Rajkot and Varanasi will cater to customers in this segment. Borrowers can get loans for purchase of house property, self-construction, home extension/renovation, plot purchase plus construction, loan against property, among others, PNB Housing Finance said in a release. Whether loan applicants are new to credit, self-employed without formal income or salaried from a low-income group

Poonawalla Fincorp to sell housing finance unit to TPG for Rs 3,900 cr

PFL to explore inorganic investments for business growth

RBI's Housing Price index up 4.5% in Q2, Kochi tops chart with 11.5% rise

Four of the 10 cities in the index recorded sequential contraction, the others posted expansion

Indiabulls Housing embarks on growth path after three quarters of stability

IHFL's balance sheet and AUM have stabilised and the base has been formed for 10% YoY growth in loans this financial year

Hemmed in by interest rate hikes, HFCs see 19% dip in Q2 net profit

The uptick in operating income reflects robustness in the home loan portfolio and hike in lending rates