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Does shadow banking exist in India? -II

Jul 12, 2013

Prevalence of shadow banking in India, risks and repercussions of global financial crisis

LICHF: A shift of focus…

May 16, 2005

The mortgage to GDP ratio (ratio of outstanding home loans to GDP) in India has notched a percentage gain and has risen to 3% in FY05 as against 2% in FY04. In Pakistan, it is less than 0.5% and in other countries of South Asia, mortgages as a percentage to GDP are almost insignificant. As against this, this ratio for the US stands at over 51%. Nevertheless, even if one were to benchmark with more comparable counterparts, the ratio ranges between 15%-20% for South East Asian countries. The penet

HDFC: Will the story sustain?

Mar 30, 2005

While the home loan market continues to grow at a CAGR of 25%, the tax sops (on interest as well as loan repayment) provide a further trigger to the same. Notwithstanding an upward bias in interest rates, if the non-food credit growth has to sustain, it has to be on the back of strength in the housing finance industry. This is further vindicated by the fact that of the total non-food credit growth witnessed during 9mFY05, retail loans, which account for approximately 40% of the total non-food di

HDFC: ‘Shelter’ing growth

Dec 31, 2004

Considering the shortage of 19.4 m dwelling units and an estimated outlay of Rs 7,200 bn by 2007 for the housing sector (as per the Tenth Plan), the housing finance market is certainly on the springboard for a giant leap. Thanks to the burgeoning middle class population and government’s generosity regarding ‘housing loan ‘ tax sops, home loan finance is here to stay. The following graph gives a snapshot of the growth in housing finance industry over the last few years.

Housing Finance: An opportunity knocking?

Dec 22, 2004

Macroeconomic stability (or instability) and performance of the housing sector are inextricably linked. However, in contrast, while economies in South Asia have performed strongly in recent times, the consequent effect of this growth has failed to filter down to the housing sector. In India, which is the one of the most advanced economies in South Asia, the mortgage to GDP ratio (ratio of outstanding home loans to GDP) is estimated at 2%. In Pakistan, it is less than 0.5% and in other countries

LICHF: Showing performance

Nov 11, 2004

LIC Housing Finance Limited (LICHF) had announced its September quarter results sometime back. The company has reported a healthy financial performance in the September quarter, reporting topline and bottomline growth of 5% and 27% respectively, on a YoY basis. While the topline growth has been tempered compared to its earlier quarters, the bottomline growth has been encouraging. Similar results have been reported for 1HFY05. Strong improvement in operating margins, due to control over interest

LICHF: Slowdown apparent

Aug 14, 2003

LIC Housing Finance Limited (LICHF), the second largest housing finance company in the country, had reported a rather lackluster performance for 1QFY04. The company achieved a topline growth of 2%, while it reported an almost flat 1% rise in its bottomline for the June quarter. Operating margins have, however, fallen significantly in this period.

HDFC: Competition blues

May 7, 2003

HDFC, the largest housing finance company in the country, announced its FY03 results which showed a 19% growth in bottomline while its topline grew by a lower 10%. For 4QFY03 the company reported a 16% growth in bottomline while its topline grew by 9%. While it would seem that the topline and especially the bottomline growth has slowed down, we must point out that compared to its earlier quarters, its performance in 4QFY03 must be considered in light of a higher base. The company has also report

Housing Finance : Industry in transition

Feb 8, 2003

If one were to study the sector-wise performance over the last five years, the housing finance industry has outperformed everyone’s expectations. Loan disbursals have grown at a CAGR of over 35% in the last five years. But the industry is still fragmented with a large number of players spread across different parts of the country. There are nearly 383 HFCs or housing finance companies in the country currently. This is apart from the numerous banks that have entered in to the fray. In this articl

LICHF: Margins on an upswing

Aug 16, 2002

LIC Housing Finance (LICHF) continued to record stellar performance for the quarter ended June 2002. The company's profits grew by 32% on the back of a sharp rise in operating margins and lower operating costs. Its interest income also witnessed a healthy growth of 12%.

Mortgage Backed Securities: An introduction

Jul 27, 2002

With the meltdown in global stock markets, investors are wary of parking their funds into equities. Corporate accounting concerns are among the major worries for investors today. This has led to a sharp increase in volumes of debt markets, which are considered to be safe havens in such situation. Indian debt market has also seen a sea change over the last one year. One such change is the new crop of mortgage-backed securities issued by housing finance companies (HFCs).

HDFC: Will it maintain the sheen?

Jul 26, 2002

HDFC has reported a strong performance again with 20% growth in earnings and an improvement in operating margins for the June quarter. The company's interest income growth however, slowed down due to decline in investment income. HDFC's interest on core loans increased by 17% during the quarter.

LIC Housing: Change is the key

Jun 12, 2002

LIC Housing Finance (LICHF) reported a 22% rise in earnings and a 17% growth in interest income for the quarter ended March 2002. The company's operating margins for the quarter declined by 70 basis points to 27.3%. For the full year, however, it managed its operating margins at 21%. This is commendable considering a significant decline in interest rates in the last one year.

HDFC: Strong performance

May 14, 2002

HDFC reported better than expected results for the year ended March 2002. A growth of 14% in income from operations is in line with our projections. However, a 23% rise in earnings is higher than our expectations of 18%, on the back of a sharp improvement in operating margins.

HDFC: Topline takes breather

Jan 11, 2002

HDFC has reported lower than expected growth in income from operations for the third quarter ended December 2001. Its earnings however, showed a strong growth of 22% on the back of lower depreciation charge.

HDFC: Staving off competition

Jan 7, 2002

HDFC has been reputed for its consistent performance over the past few years. Despite an economic slowdown, the company had maintained over 20% growth in first half earnings on 15% rise in topline.

“We will be the number one housing finance company in the next few years”.

Jan 5, 2002

In an interview with Equitymaster, Mr. Bhattacharya gave his views on the current scenario in the housing finance industry, SBI’s strategies and the management’s vision over the next four years.

HDFC: Stellar performance

Oct 17, 2001

HDFC has reported a 19% growth in profits and 15% rise in interest income for the September quarter. The company's performance is in line with our expectations. `

HDFC: Competition ahead

Oct 11, 2001

HDFC has maintained its financial performance since the last few quarters despite sluggish economic environment. This is due to buoyant growth in the housing finance market fueled by higher tax incentives given in the budget.

HDFC: A growth stock

Sep 26, 2001

HDFC’s stock has strongly beaten the market trend in the current year. On a YoY basis, while the Sensex crashed by 36%, the stock price of the company flared up by 52%. Since the beginning of 2001 (January 2001) also, the stock gained 26%, while the Sensex has shrunk by 34%.

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