Uneak White's Personal Brand Exploration Presentation
Houseng finance industry analysis
1. INDUSTRY ANALYSIS OF
HOUSING FINANCE INDUSTRY
IN INDIA
TURNING HOMES IN TO
DREAMS
PRESENTED BY:
SOMENDRA SINGH
ROLL NO.- 22
MBA (MARKETING)
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. 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
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. 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. 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. 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. 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. 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. 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
