Affordable Housing Finance Set to Grow 30% In FY24-25: CareEdge's Analysis

CareEdge Research Report

We expect the growth momentum for affordable housing finance companies in FY24 to continue at 29% with controlled asset quality with a gross non-performing asset ratio expected to be around 1.0%, as on March 31, 2024.

Share of the non-housing segment is expected to further increase to 27% by March 31, 2024, amidst the high competition, to mitigate margin pressures.

With elevated cost of funds and higher operating expenses, profitability is expected to moderate with the RoTA expected to normalise at 3.2% in FY24.

The capital structure for the affordable housing finance companies is expected to remain comfortable gearing of around 2.9 times as on March 31, 2024.

With the affordable housing finance companies catering majorly to the self-employed customers, the affordable housing finance companies are vulnerable to higher credit risk.

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