Demand for home loan coming from all segments of market: Keki Mistry, HDFC

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“The percentage of non-performing loans has down as we have seen about a 25 to 27 bps improvement in the level of non-performing loans.”

 

But over the last one year, whilst the momentum in the middle income and lower income has continued, we started seeing quite a significant pickup in demand from the higher income groups. Cities like Mumbai, Delhi, Bangalore, Pune, Hyderabad and Chennai are showing strong growth, says Keki Mistry, Vice Chairman & CEO, HDFC.

 

Where is the demand for housing coming from?

It is coming from all segments of the market. The affordable housing segment or the middle income, lower income, EWS segment was very strong for a period of three to four years while the upper end of the market, the demand from the higher income group, was relatively slow between 2017 and 2020. But over the last one year, whilst the momentum in the middle income and lower income has continued, we started seeing quite a significant pickup in demand from the higher income groups. Cities like Mumbai, Delhi, Bangalore, Pune, Hyderabad and Chennai are showing strong growth.

 

If one looks at our average loan amount, a year ago it was about Rs 27 lakh and the average loan amount in the current year is Rs 31,90,000 and specifically for this quarter, it is Rs 32,70,000 which means that a pick-up is seen even in the higher income.