Witnessing growth across segments; demand for high ticket sized loans improving: HDFC

Housing Development Finance Corporation Ltd (HDFC), the country’s largest mortgage lender, has witnessed a 26 percent rise in disbursements in the individual loan category during the third quarter ended December 2020.

The loan growth was seen across the segment while the demand for affordable housing segment was the highest, said Keki Mistry, Vice Chairman and CEO of HDFC Ltd.

Speaking to CNBC-TV18, Mistry said, “We have seen growth in every segment, so we have seen demand in every segment. Demand in the affordable segment is highest but it is also true that in the properties in the Central Mumbai, properties in Delhi, Gurugram which are expensive properties even there - there has been a pick-up in a demand.”

According to Mistry, December 2020 was much better than December of 2019 as the company witnessed demand across every category and not only in the affordable housing segment. The demand for higher ticket sized loans was improving, he said.

On moratorium, Mistry said, “When the moratorium was announced we had something like 16.6 percent of the individual loan in value terms who has opted for a moratorium. Also what is in the public domain is that the collection efficiency for the month of October was as much as 96.3 percent.”

Mistry expects spreads to remain stable and will be in the band 2.2 percent to 2.35 percent.