The increase in differential between circle rates and agreement values from 10-20% under section 43CA is a welcome move and presage admirably for home buyers as well as developers. LIC Housing Finance (LIC HFL) looks forward to achieving a minimum double-digit credit growth for the whole financial year 2021. Siddhartha Mohanty, Managing Director and Chief Executive Officer, LIC Housing Finance, mentions that in terms of payment the lender has already reached pre-COVID levels.
The reassurance will help to improve sales in the mid-price and affordable segments. The developers will have the advantage of it because it will enable them to reduce their finished inventory. 21% credit growth is registered in September, and 37% growth was registered in October. This is pre-COVID levels and so, there is an expectation of minimum double-digit credit growth for the whole year.
There is huge growth in the retail business. This time in the mid-segment and upper-mid segment, there are satisfactory growth. Due to the fact that prices have stabilized, people are taking attentiveness in the mid-segment, upper mid- segment. Work from home also evokes people to move to a bigger house for a stable price or less price.
People now are put off their decisions for buying a house, that is noticed from the second quarter onwards. They are straight away taking decisions, because somehow demand has been produced and there is no shortage of supply of credit, loans are available at the rate of 6.9%. The status of restructuring requests from borrowers is also an important factor here. They have received queries of 3.5% of their book size. These are the people who just examine.It is expected that there will be a minimum double-digit credit growth in FY21. The net interest margin (NIM) abide flat quarter-on-quarter (q-o-q) at 2.34%.