Industry profile: Housing is a primary necessity for humans and is a basic indicator of growth and social well-being. Development in the housing sector is not just crucial to economic growth but is also one of the tools for economic development considering the accelerator impact it has on various industries, including construction and infrastructure, the Cement sector including the labor market; it generates demand for supporting industries and leads to the creation of job opportunities. The development of housing in a country is a sign of economic welfare. That is why Govt is also supporting the housing sector as it gives the house to someone but infuses Capital and other things into the economy.
For any emerging economy, the development of the housing sector has its challenges. The biggest of these challenges is access to finance. While investment in real estate is an easy candidate for borrowing, real estate lending is more opportunity-based. In India, access to finance for housing needs is predominantly concentrated and focused on higher income groups, as that is the sector where there is formal evidence of income such as salary slips or income-tax returns.
Company profile: The Company was incorporated in 1988. The Company is registered with National Housing Bank. The Company provides housing loans to individuals and corporate bodies for building, purchasing, repairing, and upgrading houses. It also provides loans for commercial space, loans against property, and loans for purchasing residential plots. In addition, it provides home loans, which include home purchase loans, home extension loans, home construction loans, home improvement loans, residential plot loans, and loans for non-resident Indians (NRIs). The Company also provides non-home loans, which include commercial property loans, loans against property (LAP), loans for the purchase of non-residential premises (NRP), and lease rental discounting (LRD). The Company also offers construction finance to real estate developers. The Company also provides fixed deposits to raise funds.
Shareholding pattern: BSE Data
Financials and ratios : [table id=144 /]
Prospects: The NPA issue is enormous in India, and there is no visible outcome to the issue. So PNB and other banks are selling their non-core assets. In the process, First, Carlyle was interested in selling, but then they found investors and decided to infuse Capital. PNB was interested, but RBI declined. Now the issue is at the price which Carlyle capital is coming up with capital infusion is good for them, but for open offer, it was impossible. So now that becomes a hurdle.
