Report on

Trend and Progress of

Housing in India, 2013

National Housing Bank

Established under National Housing Bank Act, 1987 as the Apex
level institution for housing finance in the Country.
Preamble: "To operate as a principal agency to promote housing
finance institutions both at local and regional levels and to provide
financial and other support to such institutions and for matters
connected therewith or incidental thereto.
Vision: Promoting inclusive expansion with stability in housing
finance market
Mission: To harness and promote the market potentials to serve the
housing needs of all segments of the population with the focus on
low and moderate income housing

Contents of Presentation
Economy and Housing : Backdrop
Overview of the Indian Housing Sector
New Developments in the Indian Housing Sector
Institutional Performance viz-a-viz Housing Finance
Operations and Performance of Housing Finance Companies
Comparison: Slab wise disbursements of HFCs & PSBs to individuals
(FY 2012-13)
Emerging Trends in 2013 in the housing and housing finance sector

Economy and Housing : Backdrop

Growth slowdown, persistent inflation and the twin
deficit risks came to the fore during 2012-13
Surveys show that business confidence remains subdued
despite reforms and policy initiatives since September
2012
Volume of housing transactions higher as compared to
previous year
Mortgage & housing finance market in India on a
satisfactory traction
The Indian Mortgage Market has been growing steadily
owing to enabling factors such as stable operating
environment, stable property prices etc.

Economy and Housing : Backdrop Contd..

The sector has been demonstrating the same resilience as it did during the
global meltdown in 2007-09
Enhanced risk management
Vigil on exposure limits
Comfortable capital adequacy positions of HFCs
Housing Shortage
Demand Side
Growing Middle Class

Supply Side
Lack of availability of land

Urbanization- 31.16 per cent of the Lack of availability of Finance at reasonable

total population
rate
Operational constraints: Absence of large scale
digitization of land records and the easy access
to such records
Increase of slums and squatters

Overview of the Indian Housing Sector

Low Penetration:
Housing to GDP ratio is
around 9% (significantly
lower than the levels
achieved in most of the
advanced as well as
emerging economies )
As per the report of the
Technical Group on
Urban Housing shortage
in India (2012-17), India
needs 18.8 million
housing units in the
cities alone, out of which
more than 95% are in
the EWS/LIG categories.

Overview of the Indian Housing Sector: New Developments

The Rajiv Rinn Yojna: A Revised Interest Subsidy Scheme as an additional instrument for
addressing the housing needs of the EWS/LIG segments in urban areas. The Scheme
envisages the provision of a fixed interest subsidy of 5% (500 basis points) on interest
charged on the admissible loan amount to EWS and LIG segments to enable them to buy or
construct a new house or for carrying out addition (of a room / kitchen / toilet / bathroom)
to the existing building.
The Credit Risk Guarantee Fund Trust for Low Income Housing was set up & registered by
the Government of India (GoI) on 1st May, 2012 through the Ministry of Housing and Urban
Poverty Alleviation (MoHUPA).
NHB in association with Genworth, Asian Development Bank and International Finance
Corporation has set up Indias maiden Mortgage Guarantee Company - India Mortgage
Guarantee Corporation Pvt. Ltd. (IMGC). The Company was granted Certificate of
Registration by the Reserve Bank of India (RBI) in April 2013. NHB is the majority shareholder
with 38 per cent stake in IMGC.
Rs 6,000 crore allocated for Rural Housing Fund in 2013-14
Additional deduction of interest upto Rs 1 lakh for a person taking first home loan upto Rs
25 lakh during period 1.4.2013 to 31.3.2014.
National Housing Bank (NHB) to set up Urban Housing Fund and Rs 2,000 crore allocated in
this regard

Institutional Performance viz-a-viz Housing Finance

A) Key Players: Scheduled Commercial Banks (SCBs) and Housing Finance

Companies (HFCs).
B) Housing Loans as a percentage of Gross Bank Credit for SCBs in the last Two
Years (in Rs Crore)
Details

Mar-12

Mar-13

Gross Bank Credit (GBC)

Housing Loans (Priority & Non Priority)

43,79,300
4,03,400

49,98,400
4,62,200

Housing Loans as percentage of GBC

9.21%

9.25%

Housing Loans (Priority)

2,66,500 (66.06 %)

2,68,100 (58.01 %)

C) Disbursements and Outstanding Housing Loans of PSBs in the last Two Years (in Rs
Crore)
Data for PSBs

2013 (April 2012March 2013)

2012 (April 2011March 2012)

Percentage
change

Total
Disbursement of
Housing Loans
Total Outstanding

71,857

73,831

(2.67)%

3,11,982

2,73,012

14.27 %

Housing loan disbursements Public Sector Banks (FY13):

Ticket size Mix
100%
90%
32.4
80%

33.4

33.0

70%
60%

Above Rs 25
Lakh
Rs 10-25
Lakh
Rs 5-10 Lakh

26.9
50%

36.0

41.6

40%
30%

Rs 2-5 Lakh
Upto Rs 2
Lakh

18.0

The
housing
loans
outstanding of SCBs as on
31st March, 2013 was Rs
4,62,200 crore.
67% of the total housing
loans disbursed by the PSBs
during 2012-13 are for
Housing Loans upto Rs 25
lakh

15.9

20%

15.7

15.1
7.5

10%
7.7

7.1

FY 2010-11

FY 2011-12

0%

5.6
4.1
FY 201213(Provisional)

Approximately 10% of total

housing loans disbursed are
less than Rs 5 lakh

Operations and Performance of Housing Finance Companies

A) FINANCIAL PROFILES OF HFCS
Number of registered HFCs increased from 54 as on 31-03-2012 to 56 as on 31-03-2013.
Number of branches/offices of registered HFCs increased from 1,693 to 2,065 as on 31-03-2013.
Total outstanding housing loan portfolio increased by 30.69%. to Rs. 2,90,427 crore
Total NNPAs as on 31-03-2013 were Rs 1,754 crore an increase of 20.97 %.
Total Net Owned Funds as on 31-03-2013 increased by 37.53%,
Particulars

2011

2012

Growth %

2013

Growth %

Paid up Capital

5,168

5,403

4.55

5,541

2.55

Free Reserves

29,658

34,658

16.86

48,019

38.55

Net Owned Fund (NOF)

32,731

37,103

13.36

51,027

37.53

Public Deposits

28,694

35,476

23.64

44,179

24.53

Outstanding Housing Loans

186,438

222,225

19.20

290,427

30.69

Operations and Performance of Housing Finance Companies

A) Borrowers type-wise Disbursement Trend of Housing Loans by HFCs
Total disbursements of Rs. 106, 135 crore. Growth of 34%
Out of total disbursements for the year 2012-13, 84% of their housing loans were to
individuals, 12% to builders and 4% to corporate bodies.

A) Total Disbursement of Housing loan to individuals

Particulars

2012

% to Total

2013

% to Total

upto Rs. 2,00,000

Above Rs. 2,00,000 and upto Rs. 500,000
Above Rs. 5,00,000 and upto Rs. 10,00,000
Above Rs. 10,00,000 and upto Rs.
15,00,000
Above Rs. 15,00,000 and upto Rs.
25,00,000
Above Rs. 25,00,000
Total

362
1,912
9,584
9,732

0.53
2.80
14.05
14.27

505
2,027
12,649
11,659

0.55
2.19
13.66
12.59

17,283

25.33

22,037

23.80

29,348
68,221

43.02
100.00

43,712
92,589

47.21
100.00

28.99 %

Comparison: Slab wise disbursements of HFCs & PSBs to

individuals (FY 2012-13)
PSBs
Category/size of housing
loan
(in Rs )
up to. 2,00,000

Amount
in Crore

HFCs
Percentage to
total

Amount
in Crore

Percentage to total

2957

4.1

505

1.16

4028

5.6

2,027

2.19

11281

15.7

12,649

13.66

29912

41.6

33,696

36.39

Above 25,00,000

23678

33.0

43,712

47.21

Total

71857

100

92,589

100

Above . 2, 00,000 and

upto . 500,000
Above 500,000 and upto
10,00,000
Above 10,00,000 and up
to 25,00,000

67 % (Rs.
48178 crore)
NPA (as on march 31, 2013)
PSBs : 2.35 % (Provisional)

53 % (Rs.
48877 crore)
NPA (as on march 31, 2013)
HFCs : 0.45 %

Emerging Trends in 2013 in the housing and housing

finance sector:
Retail home loan market is well integrated into the broader financial
sector and the capital market
Large market segment dependent on formal financial system for credit
availability.
The Government-sponsored schemes and programs at national and
state levels have given considerable boost to the housing infrastructure
in the country and have led to increased credit flow into the low income
segment
A parallel intervention in terms of mortgage guarantee has been
introduced for mitigating the credit risk associated with the segment
Policies to facilitate capital inflows in the housing sector through FDI
and ECB route will improve both supply of funds as well as standards
and qualities of lending and construction
Technology to be packaged with financing

Emerging Trends in 2013 in the housing and housing

finance sector:
Focus on niche market segment like
Energy Efficient Homes
Rural Housing
Government Sponsored Schemes like RRY and CRGFTLIH
Financial Innovation- Covered Bonds, RML etc.
Union Budget Support (fiscal) towards Housing and Housing
Finance Sector
Regulatory Support
Sustained focus on Credit-Risk Mitigation Measures
The Real Estate (Regulation and Development Bill)

Thank You