HFCs to need ~9,000-16,000cr capital over 3 yrs

Housing finance companies (HFCs) are likely to need around ~9,000-16,000 crore of external capital over the next three years to grow at 20-22 per cent, said a report on Monday. Most of this incremental capital requirement would be for the small HFCs, including those operating in the affordable housing space, it said. “HFCs will require around ~9,00016,000 crore of external capital (11-19 per cent of their existing net worth) to grow at a CAGR of 20-22 per cent for the next three years with internal capital generation levels of 15-16 per cent,” said the report by rating agency Icra. It, however, said the capital adequacy by HFCs remains comfortable, given the relatively lower risk weights for home loans and commercial real estate loans.