Macro Economy

HDFC’s Parekh says time ripe to support first-time home-buyers

K.R.Srivats New Delhi | Updated on February 20, 2018 Published on February 20, 2018

Shiv Pratap Shukla, Minister of State for Finance, flanked by S Kalyanaraman (left), CEO and MD, NHB, and Deepak Parekh, Chairman, HDFC, releasing a special report on the PM’s urban housing scheme in New Delhi on Tuesday   -  KAMAL NARANG

Need to increase housing stock via new houses

HDFC Chairman Deepak Parekh on Tuesday said India should look to increase its mortgage-to-GDP ratio from the current 9 per cent to 15 per cent over the next five to seven years.

There is need to increase the housing stock in the country by building new houses, rather than resorting to trading in home loan portfolios between banks or housing finance companies, Parekh said at an HDFC event to launch a special report on Pradhan Mantri Awas Yojana (urban)-Credit Linked Subsidy Scheme.

Parekh said the housing finance regulator National Housing Bank should look into this common practice of trading in home loan portfolio and decide whether such a trend should be encouraged in India or not.

“Our primary focus should be to support first-time home buyers. There is a difference between home loans and loans against property. Need of the hour is to have more home loans and not loans against property,” Parekh said.

NHB Managing Director Chief Executive Officer Sriram Kalyanaram later told BusinessLine that NHB will look into the issue raised by Parekh as regards home loan portfolios.

The HDFC’s special report was released by Shiv Pratap Shukla, Minister of State for Finance, in the Capital.

Parekh said that total 14,290 borrowers of HDFC across the country have benefitted from the PMAY (urban)-CLSS with total subsidy of ₹302 crore.

Beneficiaries waiting

Renu Sud Karnad, Managing Director, HDFC, said another 14,000 beneficiaries are in the pipeline for availing the benefits of PMAY (urban) –CLSS scheme.

Asked about the status of the HDFC’s $1-billion Affordable Housing Fund, she said that as much as $350 million has already been deployed towards this segment.

Published on February 20, 2018

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.