HUDCO Aims Housing Loans To Go Up To 35-40% In FY18
State-owned Housing and Urban Development Corporation Ltd. (HUDCO) aims to increase the share of housing loans in its product mix to 35-40 percent this financial year on the back of the government's increased focus on affordable housing, its Chairman and Managing Director M Ravi Kanth told BloombergQuint in an interview.
Kanth said that the company has received good demand for the middle income group segments under the new Pradhan Mantri Awas Yojana (PMAY) scheme.
“As of now, the share of housing loans has been 33-35 percent but this may go up 35-40 percent this fiscal year depending upon the demand from builders working on projects for economically weaker sections and middle-income group categories.M Ravi Kanth, Chairman & Managing Director, HUDCO
According to the Credit Linked Subsidy scheme, which is a part of the PMAY scheme, MIGs with incomes in the eligible range will get an interest rate subsidy of 3-4 percent.
“Product mix will lean more towards housing sector. Housing is the root of infrastructure and infrastructure is the root of housing,” he added.
Talking about the representation of housing in the current loan book, which stood at Rs 39,391 crore as on March 31, he said: “Our loan book portfolio has two components: housing and urban infrastructure. As much as 96 percent of housing loans are going to EWS and LIG categories.”
HUDCO reported a 21 percent decline in net profit to Rs 315.36 crore for the fourth quarter of financial year 2016-17 ended March 31, even as the housing infrastructure company made a stellar debut in the market.
Its net profit stood at Rs 398.21 crore in the year-ago period, the company said in a regulatory filing.
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