Page 16 - Banking Finance July 2017

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

RBI easing housing finance norms credit negative: Merger between Aadhar
Moody's Housing Finance and DHFL
Rating agency Moody's mentioned that the Reserve Bank of India's (RBI) move Vysya Housing Finance
to relax regulatory norms for housing finance might in-
crease risks for banks. The move is credit-negative, The proposed merger between
Aadhar Hous-
meaning their rating could be lowered and getting loans ing Finance
would be difficult. The lower capital requirements will
and DHFL
weaken banks' protection against the housing sector, Vysya Hous-
which has grown rapidly in recent years, and will en- ing Finance is
courage greater lending. approved by
Moody's warned that this growth was occurring because non-bank finance com- the housing finance regulator Na-
panies (NBFCs) were increasingly targeting the home-loan segment, posing tional Housing Bank. Both the com-
greater downside risks if there was a correction in property prices. panies are owned by Wadhawan
family promoted Wadhawan Global
The RBI's notification affects the risk weights of newly originated housing loans Capital Pvt Ltd.
in two main categories. For housing loans of more than Rs 75 lakh, the risk weight
will fall to 50 % from 75 %. And for housing loans of Rs 30-75 lakh, the risk weights International Finance Corporation
will decline to 35 % from 50 %. owns 20% in Aadhar Housing, while
DHFL Vysya is fully owned by
In the year ended March 2015, the housing finance portfolio grew by 16.7 per Wadhawan family. Post merger, the
cent, while overall loan growth was 7.8 per cent. And during the years FY16 and
Wadhawan family would own 82% in
FY17, the housing finance portfolio rose by 18.8 % and 15.2, while overall bank the merged entity and the balance
credit expanded by 10.2 % and 7.6 %, respectively, Moody's added. 18% will be with institutions includ-

Housing.com co-founder Rahul Yadav joins Anuj Puri’s ing IFC, Tripathi said.
The merged entity is proposed to be
real estate venture named as Aadhar Housing Finance, sub-
Online real estate portal Housing.com’s co-founder and ject to NCLT's approval. As on March
former CEO Rahul Yadav has joined ANAROCK Property 2107, Aadhar Housing has a loan port-
Consultants, a venture floated by former chief of realty folio of Rs 3,300 crore while DHFL Vysya
consultancy JLL India Anuj Puri, Yadav confirmed to has Rs 1,800 crore. The merged entity
VCCircle. Yadav, who has joined ANAROCK as chief product and technology of- with Rs 5,100 crore of loan assets as on
ficer, will be based out of the company’s office in Mumbai’s Bandra-Kurla Com- March will be financing affordable hous-
plex, a press statement said. He is already building his team of product and tech- ing, which is one of the top priorities of
nology experts, the statement added. the Narendra Modi government.

16 | 2017 | JULY | BANKING FINANCE

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