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.
