An Analysis of Profitability and Key Hurdles for the Housing Finance Sector in India

Abstract

There is a fear of recession worldwide as is evident from the decline in the economic activities in all major economies of the world. As per the prediction of the IMF, the Indian economy looks somewhat better placed compared to other major economies for the current financial year. The real estate sector has always been a significant contributor to the process of growth of India and depends on the soundness of the Housing Finance sector to a great extent. The study tries to examine the profitability of the housing finance sector as well as identifies significant hurdles, especially in the post Covid period when the fear of global recession looms large. Three leading housing finance companies based on market capitalization are taken as the sample companies and one-way Anova is used as a significant tool of analysis. The study points that the favourable time ahead for housing finance sector in near future.