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Growth momentum to continue for a very long time in HFCs, says HDFC's Keki Mistry

Updated : June 25, 2019 11:00 AM IST

The demand for housing in India is very high and therefore, the growth momentum for housing finance companies (HFCs) will continue for a very long period of time, said Keki Mistry, vice-chairman and CEO of HDFC on Tuesday.

"I see no restriction on growth... my sense is that the demand for housing in India is so very large, structurally so very large, that growth momentum can continue for a very long period of time," he said in an interview with CNBC-TV18.

The National Housing Board (NHB) tweaked the regulatory framework for the sector a few weeks ago, raising the capital requirement to 15 percent by FY22 from 12 percent. It also called for ceiling on public deposits to be at 3 times of net owned funds versus 5 times currently.

"I don't think it is a matter of concern for most of the housing finance players. Maybe one or two or three small players may find it a little difficult because they may need to raise capital," said Mistry.

Speaking about the acceptance of deposits, he added, “There also, they have kept a fairly substantial, fairly reasonable sum of money. We are currently at about one and a half times against the regulatory requirement of three times.”

On problems faced by realty sector, he said, “There are two issues or two problems, which this sector is facing. The first is with regard to the unsold inventory in the market and the second is with regard to the stuck projects... I think there can be specific solutions around both these issues.”
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