By Abhishek Kothari Jun 30, 2021 10:24:56 PM IST (Updated)
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.
The December quarter of FY21 saw a boom in real estate registrations, particularly in the residential segment.
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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.
Disbursements, Rs cr | Q4FY21 | Q4FY20 | Q3FY21 | YOY, % | QOQ, % |
HDFC Ltd | NA | NA | NA | - | - |
LIC Housing | 22,362 | 11,323 | 16,857 | 97.49 | 32.66 |
Indiabulls Housing | NA | NA | NA | - | - |
Repco Home Finance | 640 | 602 | 552 | 6.38 | 16.08 |
CANFIN Homes | 2,001 | 1,394 | 1,106 | 43.54 | 80.92 |
HUDCO | 5,304 | 4,109 | 1,406 | 29.09 | 277.25 |
Aavas Fin | 1,013 | 862 | 765 | 17.47 | 32.48 |
Home First | 452 | 346 | 349 | 30.4 | 29.53 |
PNB Housing | 4,103 | 2,826 | 3,203 | 45.19 | 28.1 |
It is possible that most lenders would have given top-up loans to existing customers than fresh loans to new customers, given the stress in their balance sheets.
AUM, Rs cr | Q4FY21 | Q4FY20 | Q3FY21 | YOY, % | QOQ, % |
HDFC Ltd | 569,894 | 516,773 | 552,167 | 10.28 | 3.21 |
LIC Housing | 232,003 | 210,578 | 220,197 | 10.17 | 5.36 |
Indiabulls Housing | 83,000 | 93,000 | 85,000 | -10.75 | -2.35 |
Repco Home Finance | 12,122 | 11,826 | 12,059 | 2.5 | 0.52 |
CANFIN Homes | 22,105 | 20,708 | 21,004 | 6.75 | 5.24 |
HUDCO | 75,787 | 76,565 | 77,893 | -1.02 | -2.7 |
Aavas Fin | 9,454 | 7,796 | 8,823 | 21.27 | 7.16 |
Home First | 4,141 | 3,618 | 3,941 | 14.45 | 5.09 |
PNB Housing | 74,469 | 83,346 | 77,769 | -10.65 | -4.24 |
Assets under management of stressed entities like Indiabulls Housing and PNB Housing declined both quarter-on-quarter as well as year-on-year.
Housing Development Finance Corporation, the Big Daddy of HFCs, and LIC Housing Finance, gained the most market share during the March quarter, compared to the preceding quarter.
PNB Housing, Indiabulls Housing and HUDCO saw the maximum erosion in market share, quarter-on-quarter.
GNPA, Q4FY21 | Rs, cr | % |
HDFC Ltd | 11,632.00 | 1.98 |
LIC Housing | 9,558.52 | 4.12 |
Indiabulls Housing | 2,147.00 | 2.66 |
Repco Home Finance | 446.10 | 3.70 |
CANFIN Homes | 201.91 | 0.91 |
HUDCO | 3,054.01 | 4.03 |
Aavas Fin | 73.91 | 0.98 |
Home First | 62.17 | 1.80 |
PNB Housing | 2,762.00 | 4.40 |
In terms of profits, write-back of Rs 302 crore of provisions boosted the bottom line of HUDCO. PNB Housing Finance and LIC Housing Finance took a knock to their bottom lines because of elevated provisions. LICHF’s provisions humped 440 percent while that for PNB Housing was up 37 percent.
First Published: Jun 30, 2021 3:34 PM IST
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