HDFC, s the market leader in the housing finance segment, is on a strong footing, showing net profit growth of 12% in 2013-14. Steady demand in the housing loan market has held the firm in good stead.
Despite macro-economic challenges, HDFC’s retail loan portfolio has maintained a steady growth that is 20%, driven by first-home buyers in the mid-income group. The growth has mainly been volume driven, with only 2% increase in the loan amount size. The average size of individual loans was Rs. 22.1 lakh in 2013-14, compared with Rs. 21.6 lakh the previous year. In 2012-13, the company’s average loan size increased 10%.
The retail segment contributes 71% of HDFC’s loan book and the incremental growth in 2013-14 was mainly from this segment (85%).
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