Housing Finance Cos: AUMs Poised to Grow in Double-digits in FY24 & FY25

Overview

The housing finance sector continues to be aided by strong macro drivers supporting demand; despite elevated interest rates, residential sales and launches are on a strong footing.
Driven by underlying demand and supported by strong balance sheets; housing finance companies (HFCs) are witnessing the continuation of healthy AUM growth.
Retail portfolio seen growing at a healthy clip; stress in wholesale portfolio gradually ebbing. • With the declining pace of fresh slippages and recoveries in the wholesale portfolio, asset quality issues are receding for HFCs.
While net Interest Margins (NIM) are expected to remain under pressure, overall profitability is expected to improve on the back of waning asset quality stress.