Expect strong demand in the future, Npas will remain stable: Can Fin Homes | Business Top stories

Housing finance companies experienced strong growth in 2021 thanks to strong demand for home loans. Girish Kousgi, MD and CEO of Can Fin Homes, says sentiment in the industry is overwhelmingly positive.

In an interview with CNBC-TV18, he said house prices were at an all-time low, supported by low interest rates, higher affordability, all coupled with a pickup in economic activity and adequate liquidity in the market, contributes to the overall health and improvement of the industry.

Regarding the general sentiment, he said, “If you look at the sentiment, it’s very positive. Economic activity is picking up, affordability is at an all-time high, house prices are at their lowest, interest rates are also at their lowest, adequate liquidity, everything looks really good. “

Kousgi thinks Omicron might not be something too worrying because the death rate is lower than previous variants.

On demand, he said, “Demand is robust; The third quarter was extremely good for the industry as a whole and the trend is likely to continue, despite Omicron. It will be a dream race for the next few years.

Regarding the restructured book, Kousgi said: “We estimate that about 7% of the restructured book will go to Stage 3 in the coming quarters – this is about Rs 45 crore and against 45 we have provided 65 crore of Rs. “

He added: “Outside of the NPA pool, we expect to recover around 55 to 60 crore, so if you look at the NPAs overall, I think it will be pretty stable.”

On loan growth, he said, “we can close at around 18-20% growth in the future, both on book growth and on disbursement growth.”

Watch the accompanying video for the full interview