Scholarly Research Journal for Interdisciplinary Studies, Online ISSN 2278-8808, SJIF 2016 = 6.17, www.srjis.com UGC Approved Sr. No.49366, NOV-DEC 2017, VOL- 4/37 https://doi.org/10.21922/srjis.v4i37.10662
COMPARATIVE ANALYSIS OF SELECTED INDIAN HOUSING FINANCE COMPANIES BASED ON CAMEL APPROACH A. Kavitha Assistant professor(c) Department of Commerce, university PG College, Secunderabad Osmania University, Hyderabad. E Mail: Kavitha.commerce@gmail.com
Good Corporate Governance is important for sound management of any organization. Non-Banking Financial Institutions like Housing Finance Companies are no exception and there has been everincreasing demand for transparency. HFCs are facing more number of challenges in comparison with commercial banks and concentrate more on efficiency in order to survive, so there is much importance of sound management. The main aim of this research paper is to analyze the financial performance of the listed Five Housing Finance Companies (HFCs) in India, namely Can Fin Homes, DEWAN Housing finance, PNB Housing finance, LIC Housing, HDFC, by using the CAMEL model (Capital Adequacy, Asset Quality, Management Efficiency, Earning Capability and Liquidity). On the basis of corporate governance practices & disclosures in the annual report for the year 2007-2008 to 2016-2017. For this purpose, corporate governance score (CG score) is calculated for each HFCs across the different parameters as per the Companies Act. These components are used to reflect financial performance, operating soundness and regulatory compliance of financial institutions. Keywords: National Housing Bank (NHB), Corporate Governance, CAMEL model, Housing Finance Companies (HFC). Scholarly Research Journal's is licensed Based on a work at www.srjis.com
INTRODUCTION Housing is one of the primary human needs and is second to the need for food and clothing. Housing finance is a specific form of finance and efficiency of housing finance system in a country is one of the basic indicators of the growth of its economy. The appearance of a formal institutional system for housing finance has been quite late in India, with the formation of National Housing Bank (NHB) in 1988, since then housing is being accorded high priority by the Government. Housing and housing finance activities in India have witnessed tremendous growth over the years. Some of the factors that have led to this growth are - tax concessions to borrowers, increase in disposable income levels, changing age profile of the borrowers, easy availability of loans, nuclear families and urbanization, etc. As per 11th Five Year Plan (2007-2012) the total number of houses that would be required cumulatively in the plan period is slated at 45 million units (7 million backlog plus 38 million additional units) which will require an investment of around Rs.10 trillion between 2007Copyright Š 2017, Scholarly Research Journal for Interdisciplinary Studies