HDFC Stands Tall Amid NBFC Rout
HDFC Ltd. is the only housing finance company that has managed to erase losses triggered by the recent liquidity crisis that hit non-bank lenders.
The mortgage lender’s stock has risen 4.3 percent since Sept. 12 while peers tumbled. That’s amid liquidity concerns triggered by IL&FS Ltd.’s defaults, which threatened a contagion in the financial markets.
By contrast, other non-bank lenders have fallen 6 percent to 63 percent since Sept. 12. The Nifty 50 Index, too, fell 4.3 percent during the period.
HDFC has gained the most among housing finance companies over the last four years, with the lowest volatility, according to a Morgan Stanley report. A large deposit franchise of Rs 4,83,700 crore as of Sept-quarter, and a diversified liability book has ensured consistent performance for the mortgage lender, the brokerage said.