Housing finance collections reach 85-90%

While disbursements in the housing finance sector are at 60-70 per of year-on-year levels, they are expected to reach 85–100 per cent of prior-year levels in 2HFY21, a recent report by Motilal Oswal Financial Services Limited (MOFSL) stated.

This was based an analysis done by MOFSL on the NBFC sector at large. The sector has witnessed a meaningful number of equity capital raises in the past two months. Most companies have raised money largely in order to reduce leverage rather than as 'repair capital'.

Overall collection efficiency was at 85–90 per cent for affordable housing across financiers in August 2020. Given that no large-scale lay-offs or pay-cuts have been implemented by companies, the situation is manageable, it said.

In South India, construction activity is almost back at pre-Covid levels, while in north India, it is at 80 per cent of earlier levels.