HFCs Have Adequate Liquidity: ICRA
As housing finance companies raised approximately Rs 34,000 crore through debt market route and from National Housing Bank (NHB) during April and May 2020, it is expected that most of the HFCs will maintain an adequate liquidity profile for meeting their debt obligations even with lower collection levels (50-80%) in the portfolio, according to ICRA Ratings, a rating agency. ICRA said that HFCs weighted average on balance sheet cash and liquid investments stood at about 7% of the AUM as on March 31, 2020 and at 12%, including the sanctioned funding lines. The available liquidity is sufficient and could typically cover about two months of debt repayments of most HFCs, while access to the sanctioned funding lines could enhance the cover to three months.
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