Union Budget 14-15, a boost to the housing finance sector - Kapil Wadhawan, CMD - DHFL

Kapil Wadhawan, Chairman & Managing Director, DHFL

The Union Budget 2014-15 is the Modi Government's first step towards confidence-building in the economy. It has done an expert balancing act of managing economic revival and populism.

The Finance Minister has taken a cautious approach but has shown the intent to take the right steps. The heartening aspect is that he has not gone overboard on any proposal. That he has laid emphasis on developing the housing sector is an encouraging move.

We welcome the Finance Minister's recommendations towards promoting home-buying amongst India's common man. It is helpful that the income tax deduction for interest on housing loans has been raised to Rs 200 thousand (though not the expected Rs 300 thousand). Rs 40 billion for affordable housing and extending incentives for housing loans will help the housing industry in India in a big way. This is significant considering that India suffers a huge housing shortage of close to 63 million units.

We are happy with the announcement of the proposed differentiated banking framework. It should address the huge agenda in the housing space. India will benefit from having mortgage banks like those in the Western economies.

Other Budgetary recommendations such as the proposed Rs 80 billion for the rural housing scheme and the planned New Industrial Smart Cities will create newer and interesting opportunities for the housing finance industry. The net impact of the Budget is positive for the HFC sector. I am sure more could have been done, but given the fact that the FM had only 6 weeks, this is a very good beginning. The Housing Finance Industry and the DHFL Group welcome this Budget as it seeks to usher in the implementation of the NDA government's mission of "Housing for all by 2022".

Shares of DEWAN HOUSING FINANCE CORPORATION LTD. was last trading in BSE at Rs.405 as compared to the previous close of Rs. 375.25. The total number of shares traded during the day was 380287 in over 16311 trades.

The stock hit an intraday high of Rs. 418.7 and intraday low of 370.5. The net turnover during the day was Rs. 150446008.

Source : Equity Bulls

Keywords