INDUSTRY ANALYSIS OF
HOUSING FINANCE INDUSTRY
TURNING HOMES IN TO
ROLL NO.- 22
• Total market size around ₹6.3 trillion in 2012 according to NHB in India.
• There are around 27 SCBs, 31Private sector banks, 38 Foreign banks, 56 HFCs
• for providing better facility of Housing finance.
• Industry is regulated by RBI and National housing bank.
• Home loan is available as per the requirement
• NPA of HFCs (gross NPA o.77%) continues to report superior than PSBs (gross NPA 1.61%)
NATIONAL HOUSING BANK
AGRI. AND RURAL
• Pace of growth
• Govt. support
• Availability of large no. of low cost employees
• Huge profitability and potential
• Growth in the urbanization and nuclear family system
Critical success factor
• Need of necessary nod from RBI/NHB.
• Need of infrastructure.
• Better quality of services and cheap interest rates.
• Controlling of NPAs, Outstanding loans and Bad debts.
• Skilled Employees.
• Lifestyle changes
• Family break-ups and
• Growing population
• Regional shifts
• Increase in working force
• Impact of generation
• Need of license by RBI or NHB
• Fluctuating repo rate and other interest
• Various kind of hard documentation and
• Current economic situation
• High inflation
• Low growth of Realty Estate sector
• Hardware and software development
• Requirement of technological infrastructure
• Econometric modelling
Threats of Substitutes
Customers can approach
based organization and
self‐help groups as
they follow less stringent
Funds is raised from FDs
bonds, refinance from
NHB and others so low
power of bargaining
Threats of New
Industry already have
large no. of player and
intense competition so
there is little threat.
Rivalry among Existing
Competitor like large
HFCs and SCBs enjoys
their strong position
domestically and national
level also large no. of
As the industry is highly
competitive, so customer
can ask for better
services and reduction in
• An active mainstream industry.
• Effective regulatory framework by RBI.
• Robust and wide network of CBs and
• Increasing Urbanization.
• Rising Affordability.
• Increasing penetration of housing
• Rise in nuclear family system.
• Switching cost of customer.
• Rise in outstanding loans and
• Slowdown in economic growth.
• Fluctuations in interest rates.
• Changes in regulatory
Value chain activities
Primary Attributes of VACSE:
(i) Service Design
(ii) Knowledge Management
(iii) Delivery Systems Management
(iv) Moment of Truth Management
(v) Service Competition Management
Supporting Attributes are:
(ii) Process Information
(iii) Physical Aspects
(iv) Punctuality and Reliability