Since ,we already have thread’s for 3 housing finance companies in our forum Canfin/Gruh/Repco. I think it will be good to have a thread for discussing the housing finance sectoral developments.
So, here i start with the news of NHB getting a $100 Million loan for a period of 25 years.
http://www.livemint.com/Politics/T63HnZMOGuMFbek4YdoEjI/NHB-gets-100-million-loan-from-World-Bank.html
Few important points from the article
The World bank has granted a $100 million concessional loan to National Housing Bank (NHB), the state-run financier of home mortgage firms, for a period of 25 years to fund housing programmes for low-income families.
aThe World Bank programme will support the NHB in refinancing mortgage loans for people in the lower-income segments, who need long-term mortgages at affordable rates. **This borrowing will be guaranteed by the Government of India,**a
aThis is the first ever line of credit being availed by NHB from the World Bank. The programme is** designed to create significant social and developmental impact in the housing sector**, consistent with the objective and charter of the NHB,a NHB said in a statement.
aThe programme has been designed after a **detailed study on the profile of the low income housing status in the country with special regard to the aspirational drive among vast population in this segment and with due recognition of the informal nature of their income.**a
Sounds, like a positive development for all 3 of our companies. More so for Gruh & Repco given their business model.
Anyone looked at Indiabulls Financial Services?
PE - 7.14, PB - 1.5, Yld - 4.77%. 25% growth visibility. CAR - 18%
HFC IMHO forma a safe bet considering the 65 -80% LTV ratio . So unless price of the house goes below this level loan is safe.
The old adage that if you have taken loan upto a core the it’s your problem n 100 cr it become s the banks problem is true n apt for hFC where most of them have zero or little NPAs.
Can we convert some of our largecap into quality small cap HFC like GRUH or Repco is the key question.
Views invited.
Still more NPA’s to come out before we see NBFC’s in the green
‘Housing Sales Set to Fall 19% Across Top Cities in Q2’
PTI
New Delhi : Housing sales are estimated to fall 19% in April-June across nine major cities to 94,864 units on lower launches and subdued demand, according to PropEquity.
In its report released on Sunday, real estate data analytics firm PropEquity mentioned that housing sales are expected to dip by 19% to 94,864 units in the second quarter of this calendar year from 1,16,432 units in the year-ago period.
Samir Jasuja,CEO of PropEquity, said, “This is for the first time since Q3, 2021 (July-September) that housing sales have fallen below 1 lakh unit mark. Supply, too, has stayed below 1 lakh unit mark for the fourth consecutive quarter.”
New supply is estimated to fall 30% to 82,027 units from 117,208 units during the period under review.
As per the data, housing sales in Bengaluru are estimated to fall 6% to 14,676 units in April-June this year from 15,582 units in the yearago period.
Sales of residential properties in Hyderabad are likely to fall 20% to 11,815 units from 14,704 units. Housing sales in Mumbai might fall 34% to 8,006 units from 12,114 units.
Navi Mumbai is likely to witness 17% decline in sales to 6,833 units from 8,224 units.
Housing sales in Thane are expected to decline 34% to 14,832 units from 22,512 units.
Pune is likely to witness a 27% fall in sales to 17,196 units from 23,429 units. Housing sales in Kolkata are likely to decrease by 8% to 4,449 units from 4,826 units.
However, Delhi-NCR and Chennai residential markets are likely to report higher sales. Housing sales in Delhi-NCR could rise 16% to 11,703 units from 10,114 units. Sales of residential properties in Chennai are expected to rise 9% to 5,354 units during April-June 2025 from 4,927 units in the year-ago period.
Diclaimer: Started investing in PNB housing finance.
