The housing loan/mortgage market in India continues to be among the least developed when compared to some other emerging Asian economies such as Malaysia, Thailand and China.
But the sector shows signs of having a bright future in the years to come due to reasons such as increase in employment and income, availability of more disposable income in the hands of the individual and improved living standards and continuation of nuclear family set up and easy availability of finance/loans at lower rate of interest.
CFHL offers 16 loan products by way of housing and non-housing loans. During the year FY15 the loan book of CFHL increased to Rs.8,231 crore (Rs.5,844 crore in the previous year) registering y-o-y growth of 41 per cent as against HFC industry average growth of 21 per cent.
CHFL plans to counter the pressure on margins by reducing cost of borrowings. Going forward, we expect the margins to improve to the levels of 2.7 per cent and 2.9 per cent for the years 2016 and 2017, respectively, which will accelerate NII growth. We expect that the company will outperform the overall housing industry growth and will still be able to maintain its asset quality due to its strong management practices.
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