The growing affordability for the first time home buyer supported by government’s incentives such as the Pradhan Mantri Awas Yojana (PMAY), is expected to push housing credit growth to 17 percent to 19 percent in the financial year 2019, says ICRA in its latest research update on Housing Finance Companies.
ICRA expects mortgage penetration levels to go up by another 300-500 bps over the next five years. At the same time, the overall asset quality indicators for all HFCs remained stable with Gross NPA of 1.1 percent as on March 31, 2018 (1.2 percent as on December 31, 2017 and 0.8 percent as on March 31, 2017). ICRA expects overall gross NPAs for HFCs to remain range-bound between 1.2 percent to 1.5 percent.
The retail home loan asset quality of HFCs is likely to be benefitted by the recent cabinet ordinance, to treat home buyers as financial creditors, ICRA said.
Cyclone 'Shakhti' intensifies over the Arabian Sea! IMD issues high alert for Maharashtra, predicting heavy to very heavy rain and strong winds across Mumbai, Thane, and the Konkan coast until Oct 7. Coastal residents and fishermen must exercise extreme caution.
Bihar Cabinet approves a 3% increase in Dearness Allowance (DA) for its government employees and pensioners, raising the rate from 55% to 58% effective July 1, 2025. A festive financial boost ahead of Diwali and Chhath!
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