homereal estate NewsHousing Finance: Big players get bigger, others lose market share

Housing Finance: Big players get bigger, others lose market share

Despite home loans recording lowest interest rates it did not translate into either loan growth or higher profitability last financial year as assets under management rose just a little over two percent quarter-on-quarter at the aggregate level.

By Abhishek Kothari  Jun 30, 2021 10:24:56 PM IST (Updated)


The December quarter of FY21 saw a boom in real estate registrations, particularly in the residential segment.
This led housing finance companies (HFCs) to expect a similar performance in the March quarter as well, considering that quite a few states continued with discounted stamp duty rates and other such incentives to draw prospective property buyers.
PAT, Rs cr
Q4FY21
 Q4FY20
 Q3FY21
 YOY, %
 QOQ, %
HDFC Ltd
   3,179.83
   2,232.53
   2,925.83
42.43
8.68
LIC Housing
      398.92
      421.43
      727.04
-5.34
-45.13
Indiabulls Housing
      276.23
      127.00
      329.72
117.5
-16.22
Repco Home Finance
         63.20
         47.70
         79.40
32.49
-20.4
CANFIN Homes
      102.57
         90.91
      131.92
12.82
-22.25
HUDCO
      526.28
      440.91
      391.48
19.36
34.43
Aavas Fin
         87.61
         59.93
         85.62
46.19
2.32
Home First
         31.28
         12.47
         15.91
150.84
96.61
PNB Housing
      127.00
    (242.05)
      232.00
NA
-45.26
Interest rates on home loans were at their lowest in FY21, and HFCs did make a higher number of disbursements in the March quarter compared to the December quarter. Strangely, that did not translate into either loan growth or higher profitability. In theory, higher disbursals should translate into higher growth in their loan book. But at the aggregate level, assets under management rose just a little over 2 percent quarter-on-quarter.