Building on demand revival in late 2020 and early this year, the loan book of Housing Finance Companies (HFC) in India, is expected to grow at 8 to10 percent in the financial year 2022, according to ICRA.
The on-book portfolio growth moderated for HFCs in the first nine months of FY2021 (compared to March 2020) to 4.3% (excluding the portfolio of one large player, which had sizeable write-offs) from portfolio growth of 6% (Y-o-Y) in FY2020.
ICRA Ratings in a report said with revival in demand for housing credit in the industry in the last two quarters, most of the HFCs have already reached near pre-Covid level disbursements and are targeting to achieve further higher disbursements in the fourth quarter of fiscal 2021. "This is expected to push up the growth rate for FY2021 to 6-8%. Thereafter, we estimate the growth of 8- 10% for on-book portfolio of HFCs in FY2022," it said.
While Housing finance Companies are expected to regain their profitability and growth trajectory in FY2022, the rising Covid-19 infections and localised lockdowns remain a concern area.
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