| HDFC managing director K. M. Mistry in Calcutta on Saturday. Picture by Kishor Roy Chowdhury.
Calcutta, Dec. 7: HDFC and HDFC Bank have started cross-selling each others’ products in order to expand their businesses.
Addressing a press conference here today, Keki M. Mistry, managing director of HDFC, said: “The bank will sell our housing loans and we will push their consumer loans. We have started it in a very small way.”
Mistry was in the city to inaugurate the HDFC Property Fair, a housing and real estate exhibition.
Talking about the company’s growth, Mistry said business has been growing at a rate of 30-32 per cent in the last five years.
For the six months ended September 30, 2002, loan approvals were Rs 5,294.81 crore as compared with Rs 4,083.59 crore in the corresponding period of the previous year — a growth of 30 per cent. The total non-performing assets of the company hovers around 0.91 per cent.
He said that the individual housing loan business grew 40 per cent last year and the same trend has been maintained this year too.
The size of the housing market in India is to the tune of 19.4 million dwelling units. The housing to GDP (gross domestic product) ratio is a meagre 1 per cent as against 15 per cent in Thailand and 50 per cent in the US.
“There is a huge market for us,” Mistry said. HDFC currently enjoys 50 per cent market share in the housing finance segment. The corporation is also looking at the securitisation business seriously.
“We have done three securitisation deals till date. The market is at a very nascent stage. The major stumbling block is the high stamp duty and foreclosure laws,” he said.
In July last year, the company had inked a Rs 146-crore securitisation deal.
HDFC is also open to the idea of buying out housing portfolio provided it is of good quality. “We are looking at good quality big portfolios. We will carry out proper due diligence before taking over any portfolio.”
He said that the real estate market appears to have bottomed out across the country and the prices have also shown signs of firming up, making it an appropriate time for people to purchase properties, Mistry said.
In 25 years of operation, HDFC assisted over 2.11 million families nationwide to own their homes with cumulative loan approvals as on September, 2002, of Rs 45,431 crore and disbursements of Rs 37,791 crore.
Meanwhile, Tata Steel is taking part at the property fair which is being held from December 7 to 9 at Netaji Indoor Stadium with its weather-friendly and durable steel houses for the rural sector.