Housing finance is a relatively new concept in India comparing to other financial services that are widely available in the country since a long year back. However, the speedy development in housing and various housing activities have understandably led to the growth of Indian housing finance market. As a result, a number of players have barged into the market. Here, find the list of top 10 housing finance companies in India.
As the commercial banks started expanding housing-related disbursements, the market share also started growing up. In 2000, the Indian housing finance companies accounted for 70 per cent of the disbursements, while their collective share decreased to 36 per cent within 5 years. In 2005, banks accounted for 64 per cent of the disbursements.
List of Top Housing Finance Companies in India
Find below a list of some of the top housing finance companies of India:
- Housing Development Finance Corporation Limited (HDFC)
Housing Development Finance Corporation Ltd (HDFC) is one of the leaders in the Indian housing finance market with almost 17% market share as on March 2010. Serving more than 38 lakh Indian customers as on March 2011, HDFC also offers customized solutions that fit to the need of the customer. In the FY 2010-11, it registered a net profit of `4528.41 crore. It also registered a net profit of ` 971 crore in the quarter ended September 30, 2011.
- State Bank of India Home Finance (SBI)
State Bank of India is another major player in the Indian housing finance market with 17% of the market share, same as HDFC's share as on March 2010. The SBI Housing Loan schemes are specifically designed to meet the varied requirements of the customers. It offers home loan for various purposes including new house/flat, purchase of land, renovation/alteration/extension of existing house/flat etc. SBI Home Finance registered a net profit of ` 24.63 crore in the year ended March 31, 2009.
- Housing Urban Development Corporation (HUDCO)
Through its ‘Niwas’ scheme, HUDCO offers housing loans for the buying/constructing house/flat. Loans are also offered for renovation/extension/alteration of existing house/flat. In the financial year 2009-10 (ended on March 31, 2010), HUDCO registered a net profit of ` 495.31 crore, comparing to ` 400.99 crore of the previous year.
- LIC Housing Finance Limited
LIC Housing Finance is another major player in housing finance sector in India with about 8% of market share. Promoted by Life Insurance Corporation of India, LICHFL has an extensive distribution network with a strong brand presence. Recently, the company has been awarded “Consumer Superbrand 2009/10 Status” by Superbrands Council. In the last financial year (ended on March 31, 2011), LICHFL earned a net profit of ` 974.49 crore, comparing to ` 662.18 in the previous FY. It also registered a net profit of ` 256.50 crore in April- June quarter of 2011.
- ICICI Home Finance Company Limited
ICICI is the third largest housing finance company in India with almost 13% market share. It offers various types of home loans for its customers which may have tenure up to 20 years. The home loan interest rate is connected to the ICICI Bank Floating Reference Rate (FRR/PLR). Here it can be added here that, the PLR has been increased to 17.5% from its previous rate of 17% since February 23, 2011. As on March 31, 2010, ICICI HFC has 2009 branches with an asset of ` 363400 crore. The net profit of the company rose 45.19% to Rs 233.29 crore in the year ended March 2011 compared to Rs160.68 crore profit it earned during the previous year.
- IDBI Homefinance Limited (IHFL)
Founded in January 10, 2000, IDBI Homefinance Limited has become one of the major players in the Indian housing finance market with about 4% market share as on March 2010. It offers a range of housing financial solutions to its customers including Individual Home Loans, Home Improvement Loan, Home Extension Loan, Home Loans for NRIs, Plot Loans, and Loan Against Home etc. The home loan advances of IHFL as of March 2010 were Rs 3,537 crore compared to Rs 3,089 crore in the previous year. In the financial year 2010-11, IDBI Bank registered a profit of ` 1650 crore, comparing to a net profit of ` 1031 crore in the previous financial year.
- PNB Housing Finance Limited
PNB Housing Finance Limited offers a wide range of loans for purchase/construction of property to resident Indians as well as NRIs. It also offers housing finance for renovations, repairs and enhancement of immovable properties. In the last financial year (ended on March 31, 2011), PNB Housing Finance Limited registered a net profit of ` 69.37 crore, which is 3.93% more than the net profit of its previous financial year of ` 66.75 crore.
- Dewan Housing Finance Corporation Limited (DHFL)
Dewan Housing Finance Corporation Limited is one of the largest housing finance solution providers in India with an extensive network of 74 branches, 78 service centers and 35 camps spread across the nation. For the year ended March 31, 2011, DHFL registered a net profit of Rs 265.13 crore which is a growth of 75.9% over net profit of Rs 150.69 crore in the previous fiscal. In the quarter ended on September 30, 2011, DHFL earned a profit (after tax) of ` 71.89 crore.
- GIC Housing Finance Limited
GIC Housing Finance Limited, one of the leading housing finance companies in India, was initially established as ‘GIC Grih Vitta Limited’ on December 12, 1989. Promoted by General Insurance Corporation of India, GIC Housing Finance Limited offers extensive range of housing finance solutions to its customers through its wide network of 24 Business Centers and 3 Collection Centers across the nation. In the financial year 2010-11, GIC Housing Finance Limited registered a profit (after tax) of ` 113.76 crore. Furthermore, in the quarter ended June 30, 2011, it registered a profit of ` 1756 lakhs.
- Can Fin Homes Limited (CFHL)
Can Fin Homes Limited is another big player in the Indian housing finance market with an extensive network of 40 branches. It is also the first and one of the biggest bank-sponsored (sponsored by Canara Bank) housing finance companies in India. In the financial year 2010-11, Can Fin Homes Limited registered a net profit of ` 4201.6 lakhs. It also registered a net profit of ` 814 lakh in the quarter ended on September 30, 2011.
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