Credit costs, gross NPA ratio of affordable housing financiers seen going up
housing finance companies
operating in the
affordable housing
segment is expected to increase in the current financial year, according to a joint report by industry body Assocham and rating agency CareEdge.
Gross
NPA
is expected to increase to 1.6% from 1.4% in the previous year, while credit costs are seen rising to 0.4% from 0.3% mainly because of a relatively weaker borrower profile, especially in the self-employed segment.
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'Improvement in the seasoning of the loan book will lead to some natural elevation in delinquencies. Policy initiatives, such as interest subsidies, will provide a fillip for the sector. However, higher delinquencies are visible for HFCs with a higher composition of self-employed borrowers,' the report said.
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The growth in assets under management of these HFCs is likely to taper to 23% in FY26 from 25% a year ago.
On the other hand, AUM growth of prime HFCs is estimated to increase to 12.1% from 10.6% in the same period. In this segment, gross NPA is likely to reduce to 1.6% in the current financial year from 1.7% in the previous year.
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'Credit costs would remain low at 0.3% for FY26. Incidentally, the NPA in this segment mostly represents high-yield wholesale loans for builders or commercial premises,' the report said.
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