Current Affairs PDF

Market Share in IHLs Remains Higher in Banks than HFCs: NHB

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Market share of banks in individual housingAs per the National Housing Bank’s (NHB) report “The Trend and Progress of Housing in India” April 2021.The market share of banks in individual housing loans(IHLs) has gone up to 67% in 2019-20 from 62% in 2017-18 and housing finance companies (HFCs) has come down to 33%( 2019-20) from 38% (2017-18).

i.e. The market share of Individual Housing Loans (IHLs) in banks remained higher than that of Housing Finance Companies (HFCs).

Analysis of IHLs market share: 

Market Share on IHLs (2019-2020 ) Market Share on IHLs (2018-2019) Market Share on IHLs (2017-2018)
Banks 67 per cent 64 per cent 62 per cent
HFCs  33 per cent 36 per cent 38 per cent

Overall Growth: The overall growth in IHLs of banks and HFCs combined stood at 10 per cent in 2019-20 compared to 16 per cent in 2018-19.

Outstanding IHLs: The total outstanding IHLs of HFCs and banks combined was around Rs 20-lakh crore at the end of March 2019-20 compared to around Rs 18-lakh crore in 2018-19.

Outstanding IHLs of Banks and HFCs registered year-on-year growth of 8.5 per cent and 3 per cent, respectively.

Slab wise analysis: Slab-wise analysis of total IHLs of banks and HFCs combined was around 44 per cent of the total IHL as of March 31, 2020 (against 47 per cent as of March 31, 2019) was towards Rs 124 lakh housing units (119 lakh as on March 31, 2019) and 56 per cent of the total IHL (53 per cent as on March 31, 2019) was towards 30 lakh housing units in the IHL slab of over 25 lakh.

Recent Related News:

On February 17, 2021, the Reserve Bank of India (RBI) has issued “Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021” in exercise of the powers conferred under sections 45L and 45MA of the Reserve Bank of India Act, 1934 and Sections 30, 30A, 32 and 33 of the National Housing Bank Act, 1987.

About National Housing Bank(NHB):

Establishment –  July 9, 1988 under the National Housing Bank Act, 1987.
Headquarters– New Delhi
Managing Director – Sarada Kumar Hota