Crisil said in a report that the third wave of the pandemic could reduce the asset growth of housing finance companies (HFCs) by 100-200 basis points (bps).
“The third wave of the COVID-19 pandemic could cut rates of up to 200 bps… [the] Base case estimate of 9-11% Compound Annual Growth Rate (CAGR) in assets under management (AUM) of HFCs for FY 2022 and 2023,” the rating agency said in the report.
It said growth would still be higher than the 2% average in fiscal years 2020 and 2021, though slower than the broad-based 24% log between 2011 and 2019. The number of HFCs fueled by Aasan saw a nearly two-fold increase in that period. Availability of equity and debt capital.
Crisil said, “This time the growth will be influenced by players with better credit profiles. “The organic consolidation that began in fiscal 2019 will continue,” he said.
Of the total HFC AUM of Rs 13.2 lakh crore as on March 31, 2021, home loans were the largest segment (71%), followed by wholesale loans (18%) and loans against property (LAP; 11%).
“Home loans will be the fastest growing segment, as lenders continue to be selective in the non-housing segment (includes wholesale and LAP loans),” said Krishnan Sitaraman, senior director and deputy chief rating officer, CRISIL Ratings.
“After a relatively low growth in recent years, the home loan segment is expected to grow at a CAGR of 12-14% in FY 2022 and 2023. This is driven by improved sales, better affordability and preference for home ownership and larger homes. Will happen.” They said.
“That said, the third wave of the pandemic could cut 100-200bps of this growth depending on its spread, intensity and duration,” he said.
,