Page 276 - NHB AR 2020-21-3 complete- Print (1)
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improvement in disbursements is a clear sign of resumption of borrower’s confidence and the
availability of liquidity in the system. The NHB through its various refinancing scheme have
ensured infusion of liquidity in the Housing Finance system to cater the demand of HFCs to
address the housing finance requirements. NHB refinanced the HFCs to the extent of `69,757
crore in March’21 as compared to `49,592 crore in March’20, with Y-o-Y incremental growth
of `20,165 crore. The market share of HFCs in Individual housing loan segment stood at 33
per cent as of March’21 and top 20 HFCs contribute 94 per cent of outstanding loans. NHB
expanded their outreach to smaller HFCs (31 in the current financial year) and Small Finance
Banks (5 banks in the last two years). The potential for housing loan segment is on the higher
side due to demographic dividends, changes in the business models on the post pandemic
etc. To leverage the same, Securitisation platform for Residential Mortgage-Backed Securities
(RMBS) through Special Vehicle Purpose is a welcome move as suggested by the RBI Panel
Committee. This will enhance the home loan growth of Banks and HFCs and our Mortgage to
GDP Ratio will be in line with emerging markets.
Going forward, the second wave dented the housing market following a good recovery. The
impact will be less as compared to last year due to low base effect, less stringent lockdowns,
and acceleration of the vaccination drive during April-June 2021. The relaxation of lockdown
in most states in June lead to a partial bounce back in demand in the housing segment space
towards the end of Q1FY22 is very much reflected in the housing loan disbursements. A
healthy recovery is expected in the second half backed by festival season, low interest rates
and the aspiration of borrowers to own larger homes as remote working becomes the new
norm. The long-term outlook remains strong with the demand for housing expected to grow,
however, financial institutions will be cautiously optimistic as the retail NPA have started
showing signs of stress after the second wave of the pandemic.
The National Housing Bank through its various Refinancing Schemes have ensured infusion
of liquidity in the Housing Finance system to cater the demand of HFCs to address the housing
finance requirements. During COVID-19 related disruptions, of the total amount of `5,000
crore allocated by RBI under Additional Special Liquidity Facility (ASLF), disbursement of
`3,927 crore was made under NHB’s Additional Special Refinance Facility (ASRF) scheme till
June 30, 2021. Of the total amount of `10,000 crore allocated by RBI under Special Liquidity
Facility-2 (SLF-2), disbursement of `7,662 crore was made under NHB’s Special Refinance
Facility 2021 (SRF-2021) scheme till June 30, 2021.
The NHB has also been actively participating in GOI’s Housing for All Mission as a Central
Nodal Agency (CNA) under the PMAY-CLSS(U). The Bank since its inception has been
promoting a sound, healthy, viable and cost-effective housing finance system and has been a
principal anchor in many of the Government sponsored initiatives.
NHB as a supervisory body have a long vision to support the housing finance market.
256 | Annual Report 2020-21
availability of liquidity in the system. The NHB through its various refinancing scheme have
ensured infusion of liquidity in the Housing Finance system to cater the demand of HFCs to
address the housing finance requirements. NHB refinanced the HFCs to the extent of `69,757
crore in March’21 as compared to `49,592 crore in March’20, with Y-o-Y incremental growth
of `20,165 crore. The market share of HFCs in Individual housing loan segment stood at 33
per cent as of March’21 and top 20 HFCs contribute 94 per cent of outstanding loans. NHB
expanded their outreach to smaller HFCs (31 in the current financial year) and Small Finance
Banks (5 banks in the last two years). The potential for housing loan segment is on the higher
side due to demographic dividends, changes in the business models on the post pandemic
etc. To leverage the same, Securitisation platform for Residential Mortgage-Backed Securities
(RMBS) through Special Vehicle Purpose is a welcome move as suggested by the RBI Panel
Committee. This will enhance the home loan growth of Banks and HFCs and our Mortgage to
GDP Ratio will be in line with emerging markets.
Going forward, the second wave dented the housing market following a good recovery. The
impact will be less as compared to last year due to low base effect, less stringent lockdowns,
and acceleration of the vaccination drive during April-June 2021. The relaxation of lockdown
in most states in June lead to a partial bounce back in demand in the housing segment space
towards the end of Q1FY22 is very much reflected in the housing loan disbursements. A
healthy recovery is expected in the second half backed by festival season, low interest rates
and the aspiration of borrowers to own larger homes as remote working becomes the new
norm. The long-term outlook remains strong with the demand for housing expected to grow,
however, financial institutions will be cautiously optimistic as the retail NPA have started
showing signs of stress after the second wave of the pandemic.
The National Housing Bank through its various Refinancing Schemes have ensured infusion
of liquidity in the Housing Finance system to cater the demand of HFCs to address the housing
finance requirements. During COVID-19 related disruptions, of the total amount of `5,000
crore allocated by RBI under Additional Special Liquidity Facility (ASLF), disbursement of
`3,927 crore was made under NHB’s Additional Special Refinance Facility (ASRF) scheme till
June 30, 2021. Of the total amount of `10,000 crore allocated by RBI under Special Liquidity
Facility-2 (SLF-2), disbursement of `7,662 crore was made under NHB’s Special Refinance
Facility 2021 (SRF-2021) scheme till June 30, 2021.
The NHB has also been actively participating in GOI’s Housing for All Mission as a Central
Nodal Agency (CNA) under the PMAY-CLSS(U). The Bank since its inception has been
promoting a sound, healthy, viable and cost-effective housing finance system and has been a
principal anchor in many of the Government sponsored initiatives.
NHB as a supervisory body have a long vision to support the housing finance market.
256 | Annual Report 2020-21
