HomeEconomy NewsIndia Shelter CEO on how PMAY initiatives could boost growth for affordable housing financiers
India Shelter CEO on how PMAY initiatives could boost growth for affordable housing financiers
Nearly 60% of the housing financier's portfolio is currently allocated to housing loans, with approximately 10-12% falling under the PMAY scheme.
Rupinder Singh, MD & CEO of Gurugram-based housing financier India Shelter Finance Corporation says, "Schemes like PMAY create a beneficial environment for growth. Not just India Shelter, but any affordable housing finance company could see a 10-12% increase in growth from such initiatives."
The Union Cabinet on June 10 approved government assistance for the construction of three crore houses under the Pradhan Mantri Awas Yojana (PMAY). Sources told CNBC-TV18 the centre could spend close to ₹4 lakh crore on this over the next 5 years.
According to sources, a middle class housing scheme for the poor may also come up for a cabinet nod.
Singh said the government has a lot planned for the first hundred days, adding that he expects some positive announcements for the housing finance sector from the upcoming Budget in July.
Around 60% of India Shelter's loan book comprises housing loans, while the remaining 40% is allocated to loans against property.
Of the housing loans, approximately 10-12% are under the PMAY scheme.
Currently, around 5-6% of their customers are benefiting from the ongoing PMAY schemes introduced about two years ago.
Singh said PMAY has been effective in attracting new customers and driving business growth.
In a note to investors, brokerage firm Systematix stated that the housing scheme outlay will prove beneficial for the affordable and mid-segment players.
They anticipate that the government may introduce a new ₹60,000 crore interest subsidy scheme for the urban poor and middle class over five years.
The government could also provide an interest subvention of 3-6% per annum on home loan amounts up to ₹50 lakh.
India Shelter, which has a market capitalisation of ₹6,980.80 crore, has seen its shares gain 19% over the last year.
The Union Cabinet on June 10 approved government assistance for the construction of three crore houses under the Pradhan Mantri Awas Yojana (PMAY). Sources told CNBC-TV18 the centre could spend close to ₹4 lakh crore on this over the next 5 years.
According to sources, a middle class housing scheme for the poor may also come up for a cabinet nod.
Singh said the government has a lot planned for the first hundred days, adding that he expects some positive announcements for the housing finance sector from the upcoming Budget in July.
Around 60% of India Shelter's loan book comprises housing loans, while the remaining 40% is allocated to loans against property.
Of the housing loans, approximately 10-12% are under the PMAY scheme.
Currently, around 5-6% of their customers are benefiting from the ongoing PMAY schemes introduced about two years ago.
Singh said PMAY has been effective in attracting new customers and driving business growth.
In a note to investors, brokerage firm Systematix stated that the housing scheme outlay will prove beneficial for the affordable and mid-segment players.
They anticipate that the government may introduce a new ₹60,000 crore interest subsidy scheme for the urban poor and middle class over five years.
The government could also provide an interest subvention of 3-6% per annum on home loan amounts up to ₹50 lakh.
India Shelter, which has a market capitalisation of ₹6,980.80 crore, has seen its shares gain 19% over the last year.
(Edited by : Shweta Mungre)
First Published: Jun 12, 2024 12:30 PM IST
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