Housing finance companies (HFCs) like Can Fin Homes, Indiabulls Housing Finance and LIC Housing Finance have reported a healthy growth in last quarter denying all the doubts of worse impact of demonetisation raised by several real estate companies and experts.
Despite the number they’ve shown in their post is slightly lower than their past performance, the achieved growth rate is highly boosting for the real estate market considering cash crunch and customer’s wait-and-see approach after demonetisation. Reportedly, the growth rates observed in the last quarter of Can Fin Homes, Indiabulls Housing Finance and LIC Housing Finance are 28, 30 and 15 per cent respectively.
The recent decline in bank interest rates is one of the major reasons behind this encouraging growth as the cost of funds reduced which led to generate higher margins. With this, enquiries for loans have increased and there is an expectation of 18-20 per cent growth by the end of financial year, according to Kapil Wadhawan, Chairman, DHFL.
“Housing finance companies have a single product mindset, so they would continue to remain single product focused,” says Gagan Banga, Vice Chairman, Indiabulls Housing Finance.
Source: ET Realty