Last updated: 02 Feb, 2021 | 12:49 pm
HDFC, the country's largest mortgage lender has seen a strong recovery in its operations. The demand for home loans continued to remain strong owing to low interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans. The asset quality has also shown improvement.
During the nine months ended December 31, 2020, 34% of home loans approved in volume terms and 17% in value terms were to customers from the Economically Weaker Section (EWS) and Low Income Groups (LIG). HDFC could see an improvement in this segment of its loan portfolio, especially after Union Budget extended the timeline for taking home loans for affordable homes and claiming additional tax deduction on interest payment till March 31st 2022. Going forward, the company is well-positioned to take advantage of the demand recovery given its leadership status.