The Hindu Business Line : Housing finance cos on recovery mode despite downbeat market

Among these non-banking financial institutions, GIC Housing Finance and Dewan Housing Finance on Wednesday gained 4 per cent and 2 per cent respectively. However, LIC Housing Finance finished in the red, down 1.13 per cent.

Dewan Housing is currently trading at Rs 66.50, up from its 542-week low of Rs 37.05. LIC Housing finished at Rs 170.25 against its year-trough of Rs 159.20. GIC Housing’s recovery is relatively low. It has recovered to Rs 32.85 from its recent low of Rs 30.70.

According to Mr Kapil Wadhwan, MD of Dewan Housing, industry growth has been scaled down to between 18 and 20 per cent from 30 per cent a year ago.

Even after RBI measures, liquidity constraints and escalation in borrowing cost persist.

The industry was expecting cuts in repo rates and CRR.

On the demand side, he said the premium segment has seen slowdown, but borrowings remain steady in low cost housing segment.

Fund raising thorough bonds have almost dried up causing steep hike in costs. Investments by private equity funds have also slowed down. Dewan Housing was considering securitisation of part of its loan portfolio.

A senior official of LIC Housing admitted that going was tough. “One needs to be innovative and at the same time watchful of pitfalls in a difficult time. However, the industry has not seen rise in defaults from the borrowers,” he added.

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