Barring PNB Housing Finance, other housing finance stocks indicate weakness, with selling pressure to mount further if crucial levels are breached.
IHFL's balance sheet and AUM have stabilised and the base has been formed for 10% YoY growth in loans this financial year
Shares of LIC Housing Finance today slipped below the 200-WMA after falling over 10 per cent. Now, four out of five leading housing finance stocks are trading below the 200-WMA.
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Shares of housing finance companies nosedived after the RBI hiked repo rate on May 4. While robust real estate demand may outweigh rate hike impact, some firms may be vulnerable to interest rate hikes
RBI had on November 12, 2021, introduced tighter asset quality reporting norms for all lenders, which brought in housing financiers and NBFCs on par with commercial banks
Activity rises as investors' fears over collections ebb
CARE Ratings expects collections and asset quality for HFCs to improve in the second half as the economy improves
Housing sales have picked up in recent months as the economy slowly limps back to normalcy. Therefore, a strong recovery along with better margins could re-rate stocks in HFC sector, analysts say
While bank credit to NBFCs has seen a rise of 30 per cent year on year, credit has mostly flown into larger NBFCs with good parentage and ones with better ALM positions.
The Economic Survey on Friday unveiled an early-warning system, 'Health Score', that could read signs of impending rollover risk problems in the non-banking finance sector. The IL&FS crisis following debt defaults in 2018 had led to a contagion in the domestic non-banking financial company (NBFCs) sector. The 'Health Score', developed for NBFC and housing finance company (HFCs) sectors, can help detect early-warning signals of impending liquidity problems facing the companies in the sectors. The Survey, presented in Parliament by Finance Minister Nirmala Sitharaman on Friday, said the Health Score could be used to provide early warning signals of impending rollover risk problems in the NBFC sector and help set prudential threshold of permitted funding to the sector. A sudden payment default without any prior warning by Infrastructure Leasing and Financial Services (IL&FS) in August 2018 had triggered panic and caused liquidity crisis in the NBFC sector. Quoting the recent ...
According to data shared by her, major cities having got a record inventory - the highest being 65 months in Noida and the lowest being 29 months in Hyderabad - highlighting the slump in demand
The report covered various portfolio cuts of 28 HFCs