MUMBAI: HDFC chairman Deepak Parekh has said that the size of the mortgage market will double to $600 billion in five years and a banking structure is the best way to tap this opportunity. In his letter to shareholders, the corporation’s chairman called for shareholders’ patience as HDFC navigates through the complexities of the merger with HDFC Bank.
“At this juncture, we are awaiting regulatory guidance. We remain respectful of all our regulators and are confident that the outcome will be judicious and fair at a systemic level,” said Parekh. He added that the corporation needed shareholders’ trust and support more than ever.
According to Parekh, despite a doubling of housing loans, India’s mortgage penetration would still remain low at an estimated 13% of GDP. “Now is the time to ask ourselves what will it take for India’s mortgage to GDP ratio to cross 20% and beyond? When one looks at comparable Asian economies, the average ratios range between 20% and 30%,” said Parekh.
