Latest news with #PradhanMantriAwasYojna
Mint
2 days ago
- Business
- Mint
Affordable housing financiers get a RBI rate cut boost. But it may not last.
NEW DELHI : Affordable housing finance companies (HFC) are back in vogue since the Reserve Bank of India's (RBI) surprise 50-basis-point rate cut on 6 June. Their stocks rose around 6-7% in the last two trading days, before the broader financial services sector gave up most of its gains on Tuesday. It's because in a low-interest rate regime, affordable HFCs are likely to offer better returns compared to prime or super prime lenders, according to experts. 'The affordable space is niche and relatively less competitive, as there are no banks present in that segment," Anusha Raheja, research analyst at Dalal & Broacha Stock Broking Pvt. Ltd told Mint. 'Hence, they will face lower NIM (net interest margin) pressures compared to the prime or super prime segments going ahead." Nonetheless, Harsh Madhusudan Gupta, manager of Ionic Asset's PIPE fund, said the RBI's latest policy move should benefit most HFCs in general. 'It should be incrementally accretive for their earnings per share and book value per share estimates, despite the fact that the move is to some extent just front-loading the overall rate cuts." Catering to prime or super-prime borrowers puts housing financiers in direct competition with banks, given that this is a relatively safer lending pool. Now that the RBI has slashed the repo rate to 5.5%, banks will also reduce their repo-linked home loan interest rates soon, compelling HFCs to follow suit even if their borrowing costs don't fall immediately. This will likely squeeze the profitability of prime and super prime HFCs a bit harder, Raheja added. Affordable housing financiers' funding costs are high and they charge higher interest as they have a riskier borrower profile and lower quality of collateral. But since the National Housing Bank subsidizes most of their funding costs, they end up earning higher margins and higher return on their assets. The government nudge Moreover, the government's credit-linked subsidy scheme reduces borrowers' liabilities by subsidizing the principal portions of their loans. This reduces the credit risk for lenders, making the overall business model profitable. The Union government announced the Pradhan Mantri Awas Yojna (PMAY) 2.0 in its 2025 budget to provide 20 million additional houses to the poor in the next five years. With renewed impetus from the government and the RBI's latest monetary policy move, the market now has enough liquidity to boost home loan volumes at a much faster pace in 2025-26. "The affordable and mid-income housing segments are highly rate-sensitive, and borrowers here are quick to respond to lower EMIs," said Atul Monga, chief executive and co-founder of BASIC Home Loan, a fintech company offering home loans to semi-urban and under-served borrowers. 'With the repo rate cut translating into reduced home loan (interest) rates, we anticipate stronger traction in affordable housing loans compared to corporate or prime segments," he added. Weak housing demand However, experts also caution against an over estimation of incremental housing demand in response to the latest monetary policy actions, as residential housing demand has already been growing at a solid pace so far. 'Affordable HFCs have been growing at 30%-plus growth rates. I doubt if they will start growing at 40% after the rate cuts," Dalal & Broacha's Raheja said. Apart from slashing interest rates to 5.5%, the RBI cut cash reserve ratio (CRR) by 100 basis points to 3%, which is expected to infuse an additional ₹2.5 trillion in the economy. While this will partly offset NIM pressures arising from the latest repo rate cut and help in faster monetary policy transmission to the credit market, residential housing demand is likely to normalize on a high base, said Tanvee Gupta Jain, chief India economist at UBS. 'That said, we think the housing demand cycle could be extended based on mortgage rate cuts and improved consumer sentiment," she added. However, Raheja noted that mortgage rate cuts might not always translate to commensurately higher loan volumes, as job security and income growth also remain key deciding factors in availing home loans, particularly for the poor. To be sure, wage growth in urban India has been in a slow lane for a while now. Wage bill growth of BSE 500 companies was stuck between 4-6% year-on-year throughout 2024-25, against a 12% on-year rise in 2023-24, said a recent Nuvama Institutional Equities report. IIFL Finance gets leg up But as the market largely ignores any demand concerns for now, IIFL Finance emerged as an outperformer among all major non-banking financial companies (NBFCs), rising almost 7% in the last three days. Majority of IIFL's loan book is secured, comprising housing (40%) and gold loans (27%), and until recently its stock was trading at substantial discount to its peers. This was mainly because the RBI had imposed a ban on its gold loan business back in March 2024, citing governance issues in the company. Even though the ban was lifted in September 2024, its stock price did not react sharply to the development back then. Experts believe the RBI's latest monetary policy decisions might have triggered a potential re-rating of the stock.
Mint
23-05-2025
- Business
- Mint
Best stocks to trade on 23 May, as recommended by Trade Brains Portal
India's stock market opened in red on Thursday, with the Nifty 50 opening lower at 24,733.95 points and the BSE Sensex at 81,323 due to concerns over the US's fiscal deficit and the 30-year US treasury bond yield rising to 5.09%. For today, we have picked two stocks—one each from the housing finance sector and the auto ancillaries sector. We also take a closer look at Thursday's market performance to identify trends that may shape the indices in the days ahead. Stocks to trade today, 23 May Current price: ₹227 Target price: ₹295 in 14-16 months Stop-loss: ₹192 Why it's recommended: HUDCO is the nodal agency for the government's 'Housing for All' initiative and is also actively involved in federal schemes such as the Jal Jeevan Mission and Pradhan Mantri Awas Yojna. The company lends under these schemes and provides consultancy services for the appraisal of projects sanctioned under these. HUDCO recorded its highest ever sanctions and disbursement during FY25, with loan sanctions growing 55.31% to ₹1,27,952 crore from ₹82,387 crore in FY24. Loan disbursements increased 122.59% to ₹40,038 crore in FY25 from ₹17,987 crore in FY24, and interest income increased 33% to ₹10,200 crore in FY25 from ₹7,653 crore in FY24. Furthermore, HUDCO is targeting a ₹1.5 trillion loan book this financial year and ₹3 trillion by 2030. Its net interest margin (NIM) remained stable at 3.22% in FY25 as against 3.18% in FY24. For the next 2 years, the management has guided for NIM of 3.25-3.3%. HUDCO's interest spread improved to 2.06% in FY25 from 1.79% in FY24, resulting in a pre-tax profit of about ₹3,636 crore in FY25. HUDCO maintained a comfortable debt/equity ratio of 5.72x in FY25 as against 4.05x in FY24. Its cost of funds improved by around 35 basis points to 6.75% in FY25 from 7.1% in the prior financial year. HUDCO's asset quality is also enhancing, with its gross non-performing asset (GNPA) decreasing to 1.67% in FY25 from 2.71% in FY24, and its net NPA dropping to 0.25% in FY25 from 0.36% in FY24. Its provision coverage ratio remained at 85.44% in FY25. HUDCO is committed to resolving its NPAs in 18 months, and the management is optimistic that the company will recover ₹400-500 crore from NPA resolutions in FY26. Further, HUDCO's board of directors has approved a final dividend of ₹1.05 per equity share for FY25, with a dividend yield of 1.81%. The final dividend is in addition to the first interim dividend of ₹2.05 per equity share and the second interim dividend of ₹1.05 per equity share already declared and paid for FY25. Risk Factor: HUDCO is significantly exposed to certain state governments and public agencies. Although regulatory relaxations were granted, any failure to reduce exposures within the stipulated timelines or breach of Fiscal Responsibility and Budget Management Act (FRBM Act) conditions may lead to regulatory penalties and higher risk weights, impacting the company's capital adequacy and financial stability. Additionally, the company faces stiff competition from other players such as banks and financial institutions, which have an edge over HUDCO in terms of cheap resource availability from current account and savings account (CASA) deposits. Current price: ₹ 383 Target price: ₹440 in 16-24 months Stop-loss: ₹354 Why it's recommended: Exide Industries Ltd is a leading battery manufacturer offering a wide range of lead-acid and lithium-ion batteries for automotive, industrial, and renewable energy applications. The company supplies batteries for cars, two-wheelers, trucks, inverters, UPS systems, telecom infrastructure, railways, mining, and defense. With its diversified product portfolio, the company has battery capacities ranging from 2.5 Ah to 20,000 Ah. Exide operates in more than 60 countries and has 10 manufacturing plants in Bengaluru and Prantij. In FY25, the company added 14 distributors and reached 13 regions in the automotive segment. In the industrial segment, Exide onboarded 28 accounts, reaching more than 20 regions. For FY25, Exide reported a revenue of ₹16,588 crore, up 3.5% year-on-year (YoY) and growing at a compound annual growth rate (CAGR) of 13.4%. Profit after tax increased 2.2% to ₹1,441 crore in FY25, growing at a CAGR of 9.1% over the previous five years. Exide has low debt with a debt-to-equity ratio of 0.14, and holds ₹14,442 crore in equity. It continues to generate strong positive cash flow from operations, which was ₹1,298 crore in FY25. Further, Exide acquired 100% ownership in Exide Energy Solutions Ltd (EESL) to establish a 12 GWh greenfield project in two phases of 6 GWh capacity each to offer an end-to-end solution from cell to system—'molecule to megawatt"—by investing ₹3,602 crore. The company is also collaborating with SVOLT Tech Solutions, a leading Li-ion cell manufacturer. This synergy will help Exide set up a plant on a turnkey basis for Li-ion cell technology. The company also plans to increase its capacity by 6 GWh through four lines in Phase 1. With these latest developments, Exide is positioned to capitalize on emerging market opportunities in the battery segment. India is one of the largest automobile markets globally. The Indian electrification demand is expected to be 120 GWh by 2030, driven by production-linked incentive schemes for the auto sector, state policies on electric vehicles, and subsidies. Rating agency ICRA expects EV penetration to be 25% for two-wheelers, 40% for three-wheelers, 30% for buses, 15% for passenger vehicles, and 12-16% for light commercial vehicles as a percentage of total sales by 2030. These favourable EV demand prospects are likely to benefit the company. Risk factor: Exide Industries is exposed to intense competition in its lead-acid battery business from organized players like Amara Raja and HBL Engineering, as well as players in the unorganized space. The company is also exposed to stricter pollution control regulations as a majority of its raw materials such as lead, sulfuric acid, and lithium are hazardous. Additionally, Exide is exposed to fluctuations in the prices of raw materials such as antimony and lead, which have spiked in the past six months, hurting the company's margins. Market Recap: 22 May, 2025 The Nifty 50 reached an intraday low at 24,462 points on Thursday, touching the 20-day EMA in the daily time frame. The Sensex's low for the day was 80,489.92, also breaching the 20-day EMA. Nifty 50 closed at 24,609.70, losing 203.75 points or 0.82%, while the Sensex closed at 80,951.99, down 644.64 points or 0.79%. Sectorally, only Nifty Media ended in the green at 1,674, up by 18.35 points or 1.11%, with index constituents Network 18, Tips Music, and ZEE Entertainment gaining up to 4%. Among the losers, Nifty FMCG fell the most and ended at 55,598, losing 815 points or 1.44%, with the major laggards being Colgate-Palmolive (-6.5%), Varun Beverages (-2%), and United Breweries (-1.78%). Nifty IT closed at 37,050, down 490 points or 1.31%, due to concerns over Moody's downgrading the US's credit rating as major Indian tech companies are exposed to the US market. Asian markets were also cautious amid weak global cues on Thursday, with the Hang Seng Index losing 283.47 points or 1.19% to close at 23,544.31 and the Nikkei 225 index also closing in the red at 36,985.87, down 313.11 points or 0.84%. Additionally, the India VIX fear gauge jumped around 3% to reach a high of 18.20 on 22 May, indicating heightened market volatility. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
India Gazette
21-05-2025
- India Gazette
Uttarakhand Police hosts historic open house session with women officers
Dehradun (Uttarakhand) [India], May 21 (ANI): In a landmark initiative, the Uttarakhand Police organised an open house session with women officers under the chairmanship of Director General Deepam Seth, marking a significant step towards promoting gender inclusivity and empowerment within the force. The session, held under the chairmanship of Director General of Police (DGP) Ashok Kumar, saw enthusiastic participation from women officers ranging from Sub-Inspectors to Inspector Generals of Police. A six-member women's team from the Uttarakhand Police recently participated in the 11th National Women Police Conference (NCWP) at Tamil Nadu Police Academy, Chennai. They shared their experiences on topics like work-life balance, mental health, and career development. Their insights contributed to the discussion on creating a supportive and inclusive work environment. 'Efforts have been made to extend the benefits of various public welfare schemes like Smart City Mission, PM Swanidhi Yojna, Pradhan Mantri Awas Yojna and Amrit Mission to every citizen of Uttarakhand. Along with this, with the basic mantra of development and heritage, our rich cultural heritage,' said DGP Ashok Kumar (ANI). The DGP emphasised the importance of providing women officers with career growth and development opportunities, including special training and postings in key units like Cyber Cell and STF. 'Women personnel will play a greater role in Cyber Cell, STF, SOG, Narcotics Cell, and other vital units', said the DGP. Women officers shared their experiences on balancing work and personal life, highlighting the need for flexible work policies and supportive environments. Flexible work policies were emphasised to enable women officers to manage their work and family responsibilities effectively. Regular health check-ups, fitness programs, yoga, meditation, and sports were recommended to promote physical and mental well-being among women personnel. Meanwhile on May 20, the Chief Minister Pushkar Dhami also announced plans to digitise the offices of municipal bodies, enhancing transparency and efficiency. Silver Jubilee Parks will be constructed to provide recreational spaces for citizens. A training program will be conducted for local women and men to set up hi-tech hair salons and parlours. The targets are 10 hi-tech salons in each municipal corporation, five hi-tech salons in each municipality, and three hi-tech salons in each Nagar Panchayat. (ANI)
Indian Express
07-05-2025
- Politics
- Indian Express
Gujarat HC asks Chandola lake residents to approach authorities for rehab in accordance with law
In the case of the ongoing issue of the Chandola lake demolitions in Ahmedabad, the Gujarat High Court Tuesday disposed of a petition filed by 58 slum dwellers seeking directives for the Ahmedabad Municipal Corporation (AMC) and the state government to 'provide rehabilitation and alternate accommodation' to them. The HC directed the petitioners to file applications with requisite documents before the authorities while instructing the authorities to consider the applications in accordance with law. The petition filed by 58 residents of Chandola Lake is the second since the demolitions began on April 28. On April 29, 18 residents had moved the HC seeking a stay on the demolitions and had sought rehabilitation and resettlement under the Gujarat government schemes. In the current petition filed Monday, the 58 petitioners contended that they had been 'illegally detained on the suspicion of being Bangladeshi illegal immigrants' and only released after their 'identities were verified as being Indian nationals'. The petition contends that the petitioners belong to the Economically Weaker Section of the society and have lived in the area for over 60 years. Invoking their constitutional rights to shelter and livelihood, citing government policies such as the Gujarat Slum Rehabilitation Policy (2013, 2015) and Pradhan Mantri Awas Yojna, the petitioners stated that the District Inspector of Land Record (DILR) had been ordered to conduct a mapping of the area in February but the demolitions — in the aftermath of Pahalgam terrorist attack of April 22 — were undertaken without conducting the mapping. Represented by advocates Mihir Joshi, MTM Hakin and Rizwan Shaikh, the petitioners had stated, 'In August 2015, the District Collector (Ahmedabad) ordered the Chandola lake area to be entrusted to the AMC for development and beautification. On February 18, 2025, the AMC wrote a letter to the District Collector, requesting to pass an order directing the DILR to undertake the exercise of admeasurement and demarcation of the lake and to provide details of the encroachers and prepare measurement sheets'. 'On February 21, 2025, the Collector passed an order directing the DILR to conduct the measurement and site inspection and submit a report to the Deputy Municipal Commissioner (Estate) and Mamlatdar,' said the petition. The petition contends that the order of the Collector stated that although similar directions were passed on March 14, 2024, the DILR 'failed to conduct the survey and prepare the measurement sheet of residential, commercial and religious encroachments' near Chandola lake. Gujarat High Court Justice Mauna Bhatt disposed of the petition stating that the petitioners had not made any application before the authorities concerned. The order states, 'It is open for the petitioners to make their individual applications with requisite documents to the authority concerned. In absence of application made to that effect, the extinguishment of the petitioner's right to shelter and right to livelihood does not merit acceptance… In relation to the prayer of the petitioners to consider them to provide alternative accommodation under the rehabilitation scheme of the State Government, it is directed that it is open for the petitioners to make their individual applications, if they are eligible, along with requisite documents to respondents. Once such individual applications are filed, the authority shall consider the same in accordance with law.' The court also rejected the prayer to stay demolitions until the rehabilitation process is complete by citing the Supreme Court decision that 'a person cannot pray for regularization of construction, which is against the rule of law… Unauthorised structures have to be demolished.'
Time of India
07-05-2025
- Politics
- Time of India
Programme launched to better civic amenities in Chhapra
Chhapra: With a view to ensuring enhanced civic amenities for the people, the urban development and housing department on Wednesday launched a programme "Aapka Shahar, Aapki Baat" (your town, your expectations) at ward no. 3 in Chhapra the programme, Sunil Kumar Pandey, municipal commissioner, had conversation with the residents of the ward and gathered their issues and residents expressed their desire for a house under the Pradhan Mantri Awas Yojna (Urban), some demanded the construction of roads and drains, while others wanted renovation of damaged roads and drains. The municipal commissioner assured the residents of suitable With a view to ensuring enhanced civic amenities for the people, the urban development and housing department on Wednesday launched a programme "Aapka Shahar, Aapki Baat" (your town, your expectations) at ward no. 3 in Chhapra the programme, Sunil Kumar Pandey, municipal commissioner, had conversation with the residents of the ward and gathered their issues and expectations. Some residents expressed their desire for a house under the Pradhan Mantri Awas Yojna (Urban), some demanded the construction of roads and drains, while others wanted renovation of damaged roads and drains. The municipal commissioner assured the residents of suitable action.
