Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Loan growth target of about 25%. HDFC expects to grow its loan book (gross) by
25% by FY2011E. The share of developer loans will likely be about 32% of total (as
against its long term target of 35%) on the back of sharp growth in the retail segment in
1HFY11.
Stable margins. HDFC is confident of maintaining spreads of 2.2% in the medium term.
HDFC has raised home loan rates three times in last six months- 50 bps in September, 75
bps in January and 25 bps in February. In last two months, HDFC has raised developer
loan rates by about 1.25%. A tight liquidity environment and the bribes-for-loan scam
has affected the ability of developers to raise funds in the current environment; this will
likely augur well for HDFC.
Mix view on real estate markets. Real estate prices in Mumbai are above historic peaks
and will likely remain under pressure. In NCR, prices have risen in certain pockets. Gujarat,
Bangalore and Chennai continue to be buoyant markets.
Education loans – an untapped opportunity. HDFC has acquired a majority in Credilia,
an education loan company having loan book of Rs2 bn. HDFC believes that education
sector will provide a big opportunity. The opportunity could be in providing education
loans and/or developing and managing schools. Most cities have a deficit of good quality
schools. Several developers set up schools in residential complexes but do not have the
competencies to manage these schools. HDFC is currently working on planning its
business model in this segment.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Loan growth target of about 25%. HDFC expects to grow its loan book (gross) by
25% by FY2011E. The share of developer loans will likely be about 32% of total (as
against its long term target of 35%) on the back of sharp growth in the retail segment in
1HFY11.
Stable margins. HDFC is confident of maintaining spreads of 2.2% in the medium term.
HDFC has raised home loan rates three times in last six months- 50 bps in September, 75
bps in January and 25 bps in February. In last two months, HDFC has raised developer
loan rates by about 1.25%. A tight liquidity environment and the bribes-for-loan scam
has affected the ability of developers to raise funds in the current environment; this will
likely augur well for HDFC.
Mix view on real estate markets. Real estate prices in Mumbai are above historic peaks
and will likely remain under pressure. In NCR, prices have risen in certain pockets. Gujarat,
Bangalore and Chennai continue to be buoyant markets.
Education loans – an untapped opportunity. HDFC has acquired a majority in Credilia,
an education loan company having loan book of Rs2 bn. HDFC believes that education
sector will provide a big opportunity. The opportunity could be in providing education
loans and/or developing and managing schools. Most cities have a deficit of good quality
schools. Several developers set up schools in residential complexes but do not have the
competencies to manage these schools. HDFC is currently working on planning its
business model in this segment.
No comments:
Post a Comment