Housing finance companies struggle as mortgage rate war intensifies

Housing finance companies face challenges. Public sector banks aggressively price mortgage rates. This squeezes HFC margins. Loan disbursals grow, but AUM doesn’t keep pace. Borrowers are shifting loans. Bajaj Housing Finance saw a profit decline. LIC Housing Finance also feels the rate war. Competition is intense, impacting even large players. Margin pressure is expected to continue for a while.

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