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Third COVID wave could shave off as much as 200 bps from growth in AUM of housing finance companies: Crisil
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Expressing some concerns about the AUM growth of housing finance companies, credit rating agency, Crisil Ratings in its latest report has said that disruptions due to the third COVID wave could shave off as much as 200 basis points from the growth in assets under management (AUM) of housing finance companies in the current and next financial years.
According to the report, growth would still be higher compared with average of around two per cent over fiscals 2020 and 2021 though slower than the broad-based 24 per cent logged between fiscals 2011 and 2019. Of the total Housing Finance Companies' (HFCs) AUM of Rs 13.2 lakh crore as on March 31, 2021, home loans were the largest segment (71 per cent) followed by wholesale loans (18 per cent) and Loans Against Property (11 per cent).
The credit rating agency Crisil also noted that home loans will be the fastest-growing segment as lenders continue to be selective in the non-housing segment, comprising wholesale and LAP (Loan Against Property) loans.
