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Housing Finance: Big players get bigger, others lose market share

Housing Finance: Big players get bigger, others lose market share

Housing Finance: Big players get bigger, others lose market share
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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.
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