Page 4 - Housing Finance Companies

Liquidity pressures faced by NBFCs, HFCs, to continue: Fitch Ratings

Liquidity pressures faced by the non-banking financial sector following the IL&FS failure are likely to continue though funding costs have come off the peak, Fitch Ratings said on Friday. "We view wholesale and housing finance companies (HFCs) as more vulnerable -- given their higher leverage, weaker asset-and-liability maturity (ALM) profiles and higher concentration risks. Large retail finance companies with well-managed ALM profiles should continue to access bank and capital markets funding. Further, funding diversification in the offshore markets by larger issuers would benefit their funding profiles," it said in its outlook for emerging market finance and leasing companies. Indian finance and leasing companies are likely to grow at a slower pace in 2020 than in prior years, amid weaker economic growth and liquidity constraints, it said. Fitch said its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure.

Icra sees FY20 bank credit growth declining to 8.5% from 13.3% last year

The recent changes in mutual funds regulations are likely to result in a decline in the volume of commercial paper outstanding by March 2020

Housing finance companies' gross non-performing assets up 2.2%: Icra

Markets like Surat and Pune in the affordable segment could show higher slippages owing to delays and challenges faced by some projects

Direct sale of loans by NBFCs and HFCs takes a knock in H1, says Icra

Securitisation under pass-through certificate (PTC) transactions was to the tune of Rs 92,000 crore in the past one year

Rs 20,000 crore fund for stalled housing projects likely in 45 days: Report

In the fund, Rs 10,000 crore will be contributed by the central government and roughly, the same amount will come from outside investors

RBI panel suggests setting up new entity to boost home loan securitisation

Securitisation is needed to widen the pool of resources available to housing finance companies

RBI to come up with revised norms for housing finance companies

Moreover, it will also allow the RBI to directly give liquidity support to the stressed HFC sector

Housing finance companies get Rs 10,000-crore liquidity infusion

Finance Minister Nirmala Sitharaman will meet heads of state-owned and private banks on Monday to discuss the ongoing liquidity crisis in NBFCs

Home projects hit after NHB asks HFCs to stop financing subvention schemes

Industry sources say there will be an immediate and long-term impact

HFCs asset growth halves to about 10% in H2FY19 on fund crunch: Crisil

Annual growth in AUM pegged at 12-14% in FY20 and FY21, from about 15% seen earlier; growth in first half of FY19 was 21%

Failure of large HFCs similar to bank collapse, says RBI report

Financial stability report says recent NBFC crisis has brought greater discipline to sector

NHB notification asks housing finance companies to increase liquid assets

HFCs have to in keep 13 per cent as liquid assets--instead of 12.5 per cent earlier--with the remaining share of public deposits to be kept in the form of term deposits or certificate of deposits or i

NHB directs bigger housing finance firms to appoint chief risk officer

Recently, the liquidity-starved DHFL had said it won't allow premature withdrawals of its deposits

Why new home loan borrowers should choose banks over housing finance firms

Existing borrowers of housing finance companies pay a higher interest rate compared to new ones

5 housing finance companies dominate mkt, lend 78% of home loans: Icra

The housing finance market in India is fragmented, with 80-plus players. However, two large companies, HDFC and LIC, each has assets over Rs 1 lakh crore, cornering 57 per cent, according to rating agency ICRA.The next batch, of three HFCs - - DHFL, Indiabulls and PNB HFL -- with a book size of Rs 15,000-50,000 crore each -- have a combined market share of 21 per cent.Sector executives said though these five have a dominant share, the thrust on affordable housing finance will gradually change the scenario. A little more than 25 HFCs have been set up since 2015.The growth also comes with some risk, such as more laxity in underwriting standards in the midst of effort to expand books. The seasoning of affordable loans will throw up the challenge of slippages. Also, credit to developers (also known as developer loans) could be in default on account of consolidation and churn in real estate, due to regulatory reforms, they said. Further down the ladder, eight players with an asset base ..

Will home finance firms' dream run continue?

Experts expect companies focused on smaller cities to benefit more, as housing sector growth in the big ones is slowing