According to ICRA Ratings, healthy demand, combined with rising economic activity, will drive non-banking financial companies-housing finance companies (NBFC-HFC) growth in FY23.
According to the agency, the second wave of the pandemic had an impact on HFC disbursements in Q1FY22.
However, this was followed by a strong rebound in Q2FY22.
The on-book portfolio of NBFC-HFC in India is estimated to be Rs 11.6 lakh crore as of September 30, 2021, representing a YoY growth of 9% in H1FY22.
Going forward, the growth trend is expected to continue, driven by healthy industry demand, rising levels of economic activity, and increased vaccination in the country, the agency said.
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However, there would be a downside risk if significant disruptions were caused by the new wave of infections in Q4FY22 or future waves if any.
Furthermore, ICRA stated that the regulator’s efforts to strengthen the structural, regulatory, and supervisory framework for NBFCs may result in a greater emphasis on internal controls, which may have an impact on sectoral growth.
Given the last three years of moderate growth, pent-up demand is expected to help the industry witness portfolio growth in FY22, with the trend expected to continue in FY23, Sachin Sachdeva the Vice President and Sector Head, Financial Sector Ratings, ICRA said in a statement.
This, however, would be subject to the effects of the ongoing third wave. Nonetheless, preliminary trends, as discussed with industry participants, indicate that the third wave will have a limited impact on the industry’s operations.
As a result, ICRA has maintained its FY22 growth estimate of 8-10% for the on-book portfolio of HFCs.
Furthermore, the on-book portfolio of HFCs is expected to grow by 9-11 percent in FY23.
HFC is BVB’s Official Club Partner in India. This is HFC’s first such collaboration, and BVB’s fourth with club partnerships. The official launch of this historic partnership took place on August 20, 2020, during BVB’s Virtual Asia Tour, and was live-streamed on Hyderabad FC’s social media channels. Dortmund FC Hyderabad.
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