Houseng finance industry analysis

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Houseng finance industry analysis

  1. 1. INDUSTRY ANALYSIS OF HOUSING FINANCE INDUSTRY IN INDIA TURNING HOMES IN TO DREAMS PRESENTED BY: SOMENDRA SINGH ROLL NO.- 22 MBA (MARKETING)
  2. 2. OVERVIEW • Total market size around ₹6.3 trillion in 2012 according to NHB in India. -13 • 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%) .
  3. 3. INDUSTRY’S STRUCTURE RBI NATIONAL HOUSING BANK COMMERCIAL BANK HUDCO APEX COOPERATIVE HOUSING HOUSING FINANCE COMPNICE BANK SPONSORED STATE COOPERATIVE BANK CO-OPERATIVE INSTITUTION INSURANCE COMPANY SPONSORED URBAN COOPERATIVE BANK PRIVATE SECTOR COMPNIES STATE CO-OPERATIVE AGRI. AND RURAL BANK
  4. 4. MARKET SHARE HDFC SBI LICHF ICICI OTHER BANKS HFCs 12% 37% 16% 6% 13% 16%
  5. 5. INDUSTRY ATTRACTIVENESS • 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
  6. 6. 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.
  7. 7. EXTERNAL ENVIRONMENT SOCIAL • Lifestyle changes • Family break-ups and nuclearization • Growing population • Regional shifts • Increase in working force • Impact of generation • Need of license by RBI or NHB • Fluctuating repo rate and other interest rates • Various kind of hard documentation and KYC required LEGAL/ REGULATORY
  8. 8. Contd. ECONOMIC • Current economic situation • High inflation • Low growth of Realty Estate sector • Hardware and software development • Requirement of technological infrastructure • Econometric modelling TECHNOLOGY
  9. 9. Threats of Substitutes Customers can approach the community based organization and self‐help groups as they follow less stringent policies. Bargaining Power of Supplier Funds is raised from FDs SBA, convertible bonds, refinance from NHB and others so low power of bargaining PORTER’S MODEL High Lo w Threats of New Entrants Industry already have large no. of player and intense competition so there is little threat. Mediu m Rivalry among Existing Competitors Competitor like large HFCs and SCBs enjoys their strong position domestically and national level also large no. of players. High Bargaining Power of Customers As the industry is highly competitive, so customer can ask for better services and reduction in additional charges.
  10. 10. SWOT Analysis Strength • An active mainstream industry. • Effective regulatory framework by RBI. • Robust and wide network of CBs and HFCs. Opportunities • Increasing Urbanization. • Rising Affordability. • Increasing penetration of housing finance. • Rise in nuclear family system. Weakness • Switching cost of customer. • Rise in outstanding loans and NPAs Threat • Slowdown in economic growth. • Fluctuations in interest rates. • Changes in regulatory environment.
  11. 11. 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: (i) People (ii) Process Information (iii) Physical Aspects (iv) Punctuality and Reliability
  12. 12. Thank you........

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