No change in individual home loan demand: R Varadarajan

We do not give builder loan and therefore there is not much of a problem, R Varadarajan, MD, 66441979 66441007 66444333 Repco Home Finance, tells ET Now. Edited excerpts: Do you think the liquidity situation is much better now? No, I do not think so. What about the liquidity situation in the bond market? As far as home finance is concerned, we have been repeatedly saying that there is no liquidity problem. Even in the market, commercial paper is less than 5% of our total liability. As of now, it is only a Rs 450-crore liability which is maturing and we have enough liquidity. Probably at this stage, we will swap it with the bank finance because we have got more than Rs 1,800 crore already available from banks. What is the demand side situation in home financing? Demand is as usual. On the field, we do not see any change in demand. But a company like ours depends only on individual home loans. We do not give builder loan and therefore there is not much of a problem. But as far as individual home loans are concerned, we are seeing the same type of demand. There is no change in fees.The government says the RBI is not doing enough when it comes to liquidity and that one is staring at a situation where it is the government that is monitoring NBFC defaults and getting the banking sector to come to their rescue. Credit offtake has already crashed nearly 80%. How bad is the credit offtake situation at the moment? I am not seeing the problem as it is perceived to be. Many of the NBFCs and HFCs continue to get sanctions from banks. The only thing that is a concern is should banks refuse credit lending to NBFCs and HFCs and that is why they have taken up the issue. As far as HFCs are concerned, there is no issue on the liquidity front. But nevertheless, the government has said that the banks should continue to lend to the NBFCs and HFCs and therefore there is no crisis there.

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