New Delhi: Showcasing its commitment in reshaping the future of housing sector in India, India Mortgage Guarantee Corporation (IMGC) organised the second edition of India Mortgage Leadership Conclave in Mumbai. Themed ‘Housing Finance: The Next Growth Opportunity’, the event, comprising of housing finance players and other relevant stakeholders, discussed on the growth opportunity the sector can create in the coming years.
Dialogues involved eminent industry leaders analysing the current housing finance market in the country. The discussion also revolved around the trends and issues affecting the sector, and how to lay a roadmap for tackling future challenges that will come with the ever evolving dynamics.
Setting the stage open for all, Mr. Mahesh Misra, CEO, IMGC said, “With the successful onset of the conclave last year, the second edition aims to bring the leaders together to build the blueprint of this sector. Interestingly, over the last one year, we have received acknowledgement from various stakeholders to bring the growth of housing finance back. Lendors are keen to fine tune the affordable housing strategy. We have seen the confidence in the top 5 lenders to revive the growth in housing finance segment, and the company believes it to be a positive approach, which is very much needed to actualise ‘Housing for all’ by 2020’.”
Addressing the audience for the keynote address, Mr. Deepak Parekh, Chairman, HDFC ltd said, “The banking, finance and insurance sector has played a critical role in driving the growth of the economy. As the sector is experiencing disruption, we see this as an opportunity for the housing finance sector to grow manifolds. The most feasible solution that we have right now, seems to be One-Time Restructuring Scheme for Real Estate. We can overcome the present crisis if lenders are allowed one-time restructuring. The longer we sleep on it and wait to find solutions, the longer the same will stretch. The time has come for mortgage guarantee to pick pace in Indian market, or else, this problem shows all the signs of penetrating deeper in the coming times.”
The special address of the conclave was delivered by Mr. Amitabh Chaudhry, MD & CEO, Axis Bank highlighting on what lies ahead for the industry. He said, “Sentiments of the realty developers has been registered to be pessimistic. However, various tax reforms and boost to the housing sector makes this phase both the best and the worst time in the industry. There are mixed trends and as lenders we need to acknowledge them. Housing in the real estate sectors is lagging behind in terms of its contributions, and for developing the economy this sector need to grow at a tremendous pace. The thrust given by the government to housing finance will build the economy stronger.”
Sharing some light on the mortgage market, Rajnish Kumar, Chairman, SBI said, “In the developed countries, the mortgage market is well developed and efficient. However, with the stressed assets occupying 12.2 per cnt of loans in the Indian banking system, mortgage banking is catching up. Moreover, for India, building connected ecosystem and reducing the cost of borrowing process will help boost lending. Supplementing these market developments are the government initiatives like PMAY, which have been successful in giving the required push to the housing sector.”
The conclave also included panel discussions. The primary issue of discussion, “Evolving Landscape of the Housing Finance” witnessed participation of eminent personalities from the housing finance industry and leaders from banking, insurance and financial institutions. Mr. Sathya Kalyanasundaram (Country Head & MD, Experian India), Mr Deo Shankar Tripathi (MD & CEO, Aadhar Housing), Mr Shreekant (CGM, REHBU, SBI), Mr R V Verma (Ex CMD, National Housing Bank) were the panellist for the session.
Concluding the session on a high note, Mr. Kevin Schneider, President and CEO, Genworth Mortgage Insurance, shared his views on the opportunity India will witness in the coming years.
IMGC is committed to the Indian housing finance and mortgage guarantee segment and is focused on mitigating risk for lenders, as well as providing home buyers with improved affordability, through technological intervention and ace market intelligence and analytics. As a part of its expansion plans, the company will further serve the early home buyers and address the growing demand for affordable housing.
