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Stable economy boosts India's housing market to new heights, scales 11-year peak
The housing property market across India is witnessing substantial growth in sales volumes, driven by stable economic conditions and continued confidence, even amidst higher mortgage rates. This uptrend is led by the top eight cities, including Mumbai, Delhi-NCR, Bengaluru, Pune, and Hyderabad, propelling the country’s residential real estate market to an 11-year high in sales volumes during the first half of the year.
Ujjivan SFB adjusts loan growth guidance amid microfinance stress
I think these are things that we have to monitor very carefully and hopefully once the budget is out and announced and the revenues trickle into the economy, I think we will see some benefits from that. So, all in all, we are looking at a better second half. The effect is more in the first half of the year.
Big US banks withstand Fed's commercial real estate shock scenario
Amid economic uncertainties, the Federal Reserve's stress tests revealed big U.S. banks' resilience to a 40% drop in commercial real estate values. The tests underscored the challenges faced by regional banks and the need for robust risk assessment in the banking sector.
Are Joe Biden and Jill Biden treating their homes as a personal ATM? Here are the details of various mortgage agreements and re-financing of their various properties
A report has revealed that US President Joe Biden and the First Lady Dr Jill Biden have re-financed their Delaware home more than 20 times. There are other transactions which have led to their opponents questioning many of them.
Not getting the home loan amount you want? How to increase home loan eligibility with minimal cost
Your dream of purchasing a home of choice may suffer a serious set back if the lender is not willing to give you the loan amount that you need. You may either have to drop your plans or get a costly loan to bridge the gap. However, now you have another option to get the additional loan amount with a minimal cost with IMGC default cover. Know how it works.
The ‘buy now, pay later’ option is like a disease: Satish Mehta, Athena CredXpert
"A credit card is the most expensive piece of plastic in the world. You are charged 40% interest if you don’t pay on time. You would think it’s fine to pay 5% minimum due balance, but they still charge an interest on the outstanding amount. One should avoid treating credit cards like money in pocket," says Satish Mehta, Founder, Athena CredXpert.
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India Inc looking for credit to fund capex, corporate loan worth Rs 5 lakh cr in pipeline: SBI Chief
SBI Chairman Khara stated a growing demand for credit from corporates, with Rs 5 lakh crore loans in the pipeline, signaling a shift towards seeking credit for working capital and capacity expansion.
Builders want reduction in repo rate in RBI's next monetary policy to boost housing sales
Real estate developers urged the RBI to lower the repo rate in the upcoming monetary policy to reduce home loan interest rates and stimulate housing demand, as the RBI maintained the rate at 6.50%. Industry experts anticipate potential rate cuts in the future to boost the real estate sector further amid strong market performance.
Home loan borrowers may have repaid higher amounts
In FY23, for instance, the combined outstanding home loan portfolio of public sector and private banks and housing finance companies, which account for a big majority of the home loan market in the country was, Rs 3.62 lakh crore. But disbursements were much higher - at Rs 8.08 lakh crore. In terms of growth, while the outstanding portfolio grew 16%, the disbursements expanded 20%, according to the data released by the National Housing Bank.
Aadhar Housing Finance aims 20% AUM growth in FY25
Aadhar, 76% owned by Blackstone Group Company BCP Topco VII Pte, has a robust asset quality with gross non-performing assets being at just a tad over 1% at the end of March. That compares with 1.16% a year ago.
PNB Housing Finance shares drop over 8% after 2.7% equity change hands
PNB Housing Finance shares experienced a significant decline of over 8%, reaching the day's low at Rs 724 in Wednesday's trading on the BSE. This drop followed a sizable block deal where 2.7% of the equity changed hands.
PNB Housing Finance likely to see stake sale worth Rs 500 crore via block deal: Report
PNB Housing Finance could see a block deal worth Rs 500 crore with undisclosed sellers. The floor price is set at Rs 717 per share, a 9% discount from the current market price. Investment Opportunities V previously sold its stake. The company reported a 26% rise in net profit in Q3 FY 2023-24.
Non-mortgage security receipts formed 90% of the fresh issuances in 2023: India Ratings
In 2023, non-mortgage security receipts dominated fresh issuances, driven by retail non-mortgage bad loans, per India Ratings. Asset Restructuring Companies (ARCs) must enhance recovery infrastructure to handle this shift. Legal resolutions improved for corporate and SME bad loans, but retail loan recoveries remain crucial. ARCs adapt strategies amid evolving NPL dynamics and anticipate legal reforms to transform the recovery landscape
U.S. existing home sales drop 1.9% in April, pushed lower by high rates and high prices
Existing home sales fell 1.9% to 4.14 million in April, with median prices rising to $407,600. Lawrence Yun expressed frustration over the sales drop.
PNB Housing Finance expects 17% loan growth in FY25 aided by increase in branch network
The housing finance company opened 100 branches last year, which will help in expanding business including in affordable segment.
L&T Finance aims at 25% CAGR, retail lending in focus
L&T Finance Ltd aims for a 25% compound annual growth rate (CAGR) in the coming years, focusing on strengthening its retail lending business. The financial services arm of Larsen & Toubro plans to exit the wholesale segment entirely by 2026, becoming a 100% retail non-banking financial company (NBFC). The company introduced a new offering, 'Complete Home Loan', signaling a fresh push in its mortgage business, expected to surpass microfinance in book size.
Are US interest rates high enough to beat inflation? The Fed will take its time to find out
The sharp interest rate hikes of the past two years will likely take longer than previously expected to bring down inflation, several Federal Reserve officials have said in recent comments, suggesting there may be few, if any, rate cuts this year.
Home First eyes $75 million fundraise from US DFC
The company is in the final leg of getting all the regulatory approvals from the US for the fundraise. The lender's marginal cost of borrowing for the funds raised during the quarter to March 31, 2024 was 8.7%. The average cost of borrowing for FY24 was 8.2%, up 80 basis points year-on-year.
Aadhar Housing Finance offers a long-term growth story
Aadhar Housing Finance, the country’s largest affordable home loan company based on assets under management (AUM), plans to raise Rs 1,000 crore through a fresh issue of shares to augment the capital base and up to Rs 2,000 crore through an offer for sale by the promoter BCP Topco, an affiliate of the Blackstone group.
Modi will go down in history as PM who oversaw largest sale, mortgage of gold jewellery: Congress
The Congress responded to Prime Minister Narendra Modi's recent remarks about their manifesto, stating that he will be remembered as the leader overseeing the significant sale and mortgage of Indian women's gold jewellery. Modi had accused the Congress of planning to redistribute gold owned by mothers and sisters.
Sales of US homes slip in March as mortgage rates still high
The National Association of Realtors (NAR) reported a 4.3 percent drop in existing home sales in March, driven by elevated mortgage rates. The average 30-year fixed-rate mortgage averaged 6.88 percent as of April 11, up from the previous week. The NAR also noted that the total housing inventory registered at end-March was up from February's level, and the median price across housing types rose 4.8% from the prior year to $393,500, the highest price ever for the month of March.
Housing market continues to defy higher mortgage rates, property prices
Despite higher mortgage rates and rising prices, India's residential property market is thriving. The first quarter of the year saw record-breaking sales, with 74,486 apartments sold in the top seven markets. Mumbai, Bengaluru, and Pune led the way, with strong sales in the luxury and mid-income segments. Home loan rates are expected to decrease, boosting the affordable housing sector. Prices have increased by 3-15% from last year, with Bengaluru and Delhi NCR seeing the highest increases. The market is expected to continue its growth momentum in 2024.
Bank of India partners with IMGC for mortgage guarantee-backed products
Bank of India and India Mortgage Guarantee Corporation (IMGC) have joined forces to introduce mortgage guarantee-backed home loan products, targeting both salaried and self-employed individuals in the affordable housing sector. With IMGC's extensive branch network, the partnership aims to enhance credit delivery and provide flexible and secure home loan options.
RBI steps up scrutiny of retail lending, targets top-up home loans
RBI tightens supervision on retail lending, focusing on mortgage top-ups, algo-based credit models, and co-lending. It aims to manage risks in the financial system amid rapid credit expansion and global economic uncertainty. The RBI typically uses moral suasion - speeches, calls to bank executives, individual meetings - as initial steps to prod banks, before considering more assertive enforcement.
China seen cutting mortgage reference rate for first time since June
China is expected to trim its benchmark mortgage reference rate at a monthly fixing to stimulate the faltering economy growth. Reductions are expected in the five-year LPR and one-year tenor. Recent reductions in the medium-term policy rate, RRR, and deposit rates support this move.
At Rs 6.84 lakh crore, HDFC Bank's home loan book closes gap with SBI's
HDFC Bank disclosed that its home loan book reached Rs 6.84 lakh crore in the December quarter, nearly catching up with SBI's Rs 6.94 lakh crore home loan portfolio. SBI had overtaken HDFC in February 2021 in this segment.
RBI’s warning on exuberant retail lending has deeper dimensions
A recent RBI research delves into the empirics of retail credit growth and concludes that the quality of retail loan portfolio is healthy across banks, product categories, and borrower risk classes, even as growth continues to surge.
Majority of Ultra HNIs buying luxury property for capital appreciation
According to the survey, there is a robust economic optimism among High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs), with a staggering 79% expressing confidence in the Indian economy's positive trajectory for 2023-24, compared to 59% last year.
DCB ties up with Easy Home Fin for affordable housing loans
"Our expertise in origination and credit assessment will be boosted with the expertise and digital tech of Easy Home Finance," said Narendranath Misha, head-retail and agri loans at DCB Bank. "The alliance will enable the Bank to reach more geographies in the affordable home loan arena," he said.
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