Tag: housing finance companies

Housing FinanceLatest Stories

LIC Housing Finance Q2 FY26 Net Profit Rises 1.63%

NEW DELHI: LIC Housing Finance has shown a slight increase of 1.63% in its consolidated net profit for the quarter ending September 30, 2025. The profit after tax reached ₹1,349.37 crore in Q2 FY26, compared to ₹1,327.79 crore from the same quarter of the previous fiscal year, according to a BSE filing. The net consolidated total income for the company amounted to ₹7,179.77 crore in Q2 FY26, marking a growth of 3.48% from ₹6,938.31 crore reported during the same period last year. Tribhuwan Adhikari, the Managing Director & CEO, stated, “Our Q2 FY2026 results reflect ongoing momentum in the housing…

Housing FinanceLatest Stories

Can Fin Homes Q2 FY26 Net Profit Rises 18.89%

NEW DELHI: Can Fin Homes (CFHL) has announced an 18.89% increase in its net consolidated profit for the quarter ending September 30, 2025. The profit after tax for Q2 FY26 reached ₹251.42 crore, up from ₹211.48 crore for the same period last year, according to a BSE filing. The company reported a net consolidated total income of ₹1,049.45 crore for Q2 FY26, reflecting a growth of 9.01% from ₹962.69 crore in the corresponding quarter of the previous fiscal year. As of September 2025, the loan portfolio stood at ₹39,657 crore, compared to ₹36,591 crore in the same quarter last year,…

Housing FinanceLatest Stories

HFCs Gain NHB Support to Diversify Funding, Lower Loan Costs

MUMBAI: Housing finance companies (HFCs) are set to experience reduced borrowing costs following the National Housing Bank’s (NHB) approval of partial credit enhancement (PCE) for bonds they issue. This initiative aims to enable HFCs to pass on the benefits of lower funding costs to borrowers, particularly those in the affordable housing sector. In a letter dated October 6, the NHB notified housing finance companies that it would offer PCE on secured non-convertible debentures (NCDs) they issue, with the goal of helping them “diversify their funding sources” and “reduce reliance on banks.” The NHB stated that the facility would only be…

Housing FinanceLatest Stories

Mortgage Rate War Hits Housing Finance Companies Hard

Housing finance companies (HFCs) are under considerable strain due to aggressive mortgage pricing by public sector banks, leading to reduced margins. Although loan disbursals are growing, many HFCs are not experiencing a corresponding rise in assets under management (AUM), primarily because borrowers are transferring their home loans to rival firms. In the June 2025 quarter, Bajaj Housing Finance reported a 0.5% drop in net profit, while Aadhar Housing Finance and LIC Housing Finance experienced growth rates of 10% and 5%, respectively. The recent reduction in lending rates by the Reserve Bank of India, which cut the repo rate by 100…

Housing FinanceLatest Stories

Housing Finance Firms Scrutinized for Lending Issues

The National Housing Bank (NHB) is intensifying its scrutiny of housing finance companies (HFCs) for violating loan-to-value (LTV) norms concerning high-value home loans, according to sources familiar with the matter. Regulatory inspections by the NHB uncovered instances where loans exceeding ₹75 lakh were approved with LTVs as high as 90%, breaching the established 75% limit. The NHB has instructed lenders to reclassify these loans as non-home loans (NHL). “The regulator has identified several mortgage lenders disbursing substantial amounts for high-value residential properties,” an NHB official stated. “The NHB has communicated with these firms, ordering them to cease such practices and…

Housing FinanceLatest Stories

ICRA: Affordable housing AUM to reach ₹2.5L crore by FY28

NEW DELHI: According to ICRA, the assets under management (AUM) for affordable housing finance companies (AHFCs) are expected to grow to ₹2.5 lakh crore by FY2028, up from ₹1.4 lakh crore in March 2025. The total retail mortgage-backed loan portfolio for non-banking financial companies (NBFCs) and housing finance companies (HFCs) is projected to increase to ₹20 lakh crore by FY2028, rising from ₹13 lakh crore currently. ICRA forecasts that mortgage loans provided by NBFCs and AHFCs will see a compound annual growth rate (CAGR) of 17–19% and 20–22%, respectively, in the next three years. This growth is anticipated to be…

Housing FinanceLatest Stories

Sundaram Home Finance Q1 FY26 Net Profit at ₹62 Crore

CHENNAI: Sundaram Home Finance Ltd reported a slight drop in its net profits, reaching Rs 62 crore for the quarter of April to June 2025, as announced on Saturday. In the same quarter last year, the company had a net profit of Rs 66 crore. During the reviewed quarter, disbursements increased to Rs 1,488 crore, compared to Rs 1,353 crore during the corresponding quarter last year. The company also noted growth in its Assets Under Management (AUM), which rose to Rs 18,027 crore as of June 30, 2025, up from Rs 14,533 crore a year earlier. In the June quarter,…

Housing FinanceLatest Stories

NHB Unveils Refinance List to Prevent Misuse

MUMBAI: In a significant move towards transparency, the National Housing Bank (NHB) has released, for the first time, the list of beneficiaries under its refinance scheme. This initiative aims to prevent the misuse of NHB’s name by various lending institutions. This decision follows the exposure of Aviom India Housing Finance, which reportedly used outdated NHB refinance sanction letters, some dating back three to four years, to obtain loans from banks. “The NHB is committed to ensuring such incidents as those involving Aviom do not occur again. By making its refinance list public, it seeks to deter fraudulent entities from leveraging…

Housing FinanceLatest Stories

Housing finance firms see modest Q1 growth; rate cuts to impact margins

MUMBAI: Housing finance companies (HFCs) are projected to report moderate earnings for the June quarter, with industry-wide loan disbursals increasing by approximately 8% year-on-year, as per analyst projections. Nonetheless, margins are expected to face pressure due to intensified competition from banks and the effects of recent interest rate cuts. Moreover, provisioning costs may rise due to slower recovery rates, potentially resulting in stagnant profit after tax growth. As estimated by PL Capital, HFCs’ assets under management (AUM) are anticipated to exceed ₹3.7 lakh crore by the end of the June quarter, reflecting a 1% sequential growth. However, loan disbursals could…

Housing FinanceLatest Stories

NHB directs housing finance firms to pay interest on advance EMIs

The National Housing Bank (NHB) has instructed housing finance companies to provide interest on advance payments made by borrowers that have not been immediately applied to their Equated Monthly Instalments (EMIs) and are instead held in sundry or suspense accounts, according to sources familiar with the situation. The interest should be paid at the same rate applicable to the customer’s home loan. This initiative aims to ensure fair lending practices and prevent borrowers from incurring excessive interest costs when their advance payments are not applied promptly. “NHB is fundamentally ensuring that housing finance companies cannot profit from holding onto customers’…