India’s macroeconomic fundamentals robust; restoration underway: HDFC Chairman Deepak Parekh

Housing Development Finance Corp (HDFC) Chairman Deepak Parekh on Tuesday stated that whereas the nation’s macroeconomic fundamentals stay robust and the restoration is in progress, the unpredictability of coronavirus will stay a key problem.
Owing to the second wave, the Indian economic system is prone to mirror an analogous pattern seen in FY21, the place the primary half of the monetary yr is weaker and the second half is considerably stronger, he stated.
“I remain confident that India’s macroeconomic fundamentals are strong. Recovery is underway,” Parekh stated whereas addressing the forty fourth annual common assembly of HDFC Ltd.
He stated, the nation’s foreign exchange reserves and overseas direct funding inflows have scaled document highs, the capital markets are additionally buoyant and agriculture development is predicted to stay robust with meals grain manufacturing estimated at over 305 million tonnes.
He additional famous that the Reserve Bank of India (RBI) is dedicated to supporting development by an accommodative financial coverage and the federal government has taken a number of reforms and measures to alleviate COVID-19 associated stress.
“The key laggard remains overall credit growth which continues to remain tepid,” he stated, including when it comes to the general macroeconomic setting, the important thing problem, nevertheless, stays the unpredictability of coronavirus.
“The world is still susceptible to recurring waves of infections. Thus, economic recovery will remain uneven and patchy,” he famous.
He stated the inherent demand for residence loans continues to stay robust. Even when it comes to business actual property, most corporations haven’t given up their workplace premises.
Demand for actual property is coming from warehousing and fulfilment centres, owing to the increase within the e-commerce section.
Also, with the build-up of digital infrastructure, demand for information centres have elevated, he famous.
Against the backdrop of the pandemic, Parekh stated HDFC had articulated that there are three key monitorables – liquidity, development and asset high quality.
He stated, the company has been sustaining greater ranges of liquidity as a prudent measure.
In phrases of development, the nationwide lockdown impacted particular person loans, however as soon as restrictions had been eased, the demand surpassed all expectations, he added.
“We are confident that demand for housing will continue to be strong,” he stated.
According to Parekh, asset high quality has been difficult for non-individual loans at a systemic degree.
The company has at all times been prudent in figuring out loans the place there could possibly be stress and has adequately offered for such loans, he stated.
In FY21, demand for housing was from each reasonably priced housing and high-end properties, he stated.
As of March 31, 2021, gross non-performing loans of HDFC stood at Rs 9,759 crore, constituting 1.98 per cent of the mortgage portfolio. Its property below administration grew by 10 per cent to Rs 5,69,894 crore as of March 31, 2021.