Housing finance companies to see slower credit growth in FY21

Housing finance companies to see slower credit growth in FY21
21/04/2020 , by , in News/Views

Housing finance companies are likely to see a slower credit growth of 9-12 per cent in the current financial year as their disbursement may be impacted by the COVID-19 related disruptions, says a report. The gross non-performing assets of mortgage financiers may also increase to 1.8-2 per cent by March 2021, rating agency Icra said in a report.

Its vice president and sector head (financial sector ratings) Supreeta Nijjar said the Covid-19 induced slowdown may impact the portfolio growth of HFCs in FY2021.

“The estimated housing credit growth is likely to be 9-12 per cent in FY21 (lower than the last three years’ CAGR of 16 per cent). It is likely that people will defer their home purchases and home improvement/extension decisions in the current fiscal, till they are able to achieve stability in income levels/resumption of business activities,” Nijjar said in a report.

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