Housing Finance companies are currently in a sweet spot. Pandemic has led to favorable market dynamics with themes like affordable housing, record low-interest rates, stamp duty cuts, etc playing out.
Girish Kousgi, MD & CEO Can Fin Homes join ET NOW to help us understand the key drivers fueling strong demand. Q4 onwards the company witnessed robust demand. In Q4 company recorded all-time high numbers.
“In Q2, we are hopeful of beating the record numbers seen in Q4FY21,” says Girish Kousgi. He further highlights that ease of liquidity, rates stabilization, lower property prices, and collection efficiency inching back to normal levels are some of the key parameters driving HFCs.
Competitive landscape has become attractive due to record low interest rates offered by PSU banks and HFCs.
“Severe competition by banks both private and PSUs until Q4 which forced HFCs to dropped their yields. April onwards, increased rates once the market stabilized. I don’t think we will again see such severe competition in days to come” says Girish Kousgi.
The company is witnessing robust demand across its geographical spread. Metro cities like Bangalore, Hyderabad, Chennai, Delhi, and Mumbai contributing to increased demand.
Small towns irrespective of their geography continue to do well. In terms of the lending basket, the company continues to focus on salaries class by maintaining lending mix of 70:30 between salaried and non-salaried.
“Demand from the non-salaried class was impacted during the second wave but not as severe as the first wave,” says Girish Kousgi. The company expects 18-20% AUM growth in FY22 with main focus on keeping asset quality intact.
