Specialist in Indian Banking and Economic Research

Hemindra Hazari

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

<p><strong>Affordable housing finance has recently been in vogue, and dedicated housing finance companies were established to take part in this sunrise industry.  A recent interview by capital market veterans and savvy investors, Motilal Oswal and Raamdeo Agrawal, promoters of <a href="https://www.smartkarma.com/entities/2023" target="_blank" data-smartkarma-citation="entities:2023:1">Motilal Oswal Financial Services (MOFS IN)</a> (MOFS), revealed the pitfalls associated with Aspire Home Finance Corporation, a non-listed subsidiary, focusing on affordable housing finance. It brought to light the stunning naiveté of the promoters in setting up a lending company apparently lacking critically important functions such as credit appraisal, Know Your Customer (KYC), credit monitoring and collections. This is even more surprising since MOFS has a strong institutional equity research department, with an experienced team of sell-side banking analysts, and Raamdeo Agrawal himself publicly provides expert commentary on Indian banks and housing finance companies. Although AHFC is a relatively small, unlisted company, it suggests that investors should be cautious of the euphoria in housing finance companies. If AHFC is representative of the new firms entering the sector, it seems basic lending practices are ignored in the pursuit of growth.</strong></p>

Affordable housing finance has recently been in vogue, and dedicated housing finance companies were established to take part in this sunrise industry.  A recent interview by capital market veterans and savvy investors, Motilal Oswal and Raamdeo Agrawal, promoters of Motilal Oswal Financial Services (MOFS IN) (MOFS), revealed the pitfalls associated with Aspire Home Finance Corporation, a non-listed subsidiary, focusing on affordable housing finance. It brought to light the stunning naiveté of the promoters in setting up a lending company apparently lacking critically important functions such as credit appraisal, Know Your Customer (KYC), credit monitoring and collections. This is even more surprising since MOFS has a strong institutional equity research department, with an experienced team of sell-side banking analysts, and Raamdeo Agrawal himself publicly provides expert commentary on Indian banks and housing finance companies. Although AHFC is a relatively small, unlisted company, it suggests that investors should be cautious of the euphoria in housing finance companies. If AHFC is representative of the new firms entering the sector, it seems basic lending practices are ignored in the pursuit of growth.

Motilal Oswal Financial Services (MOFS IN)

Finance Experts Present, ABCs of Lending Absent