Business Standard

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.

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