The housing finance sector in India has seen improvements in asset quality despite a sharp rise in interest rates over the past one-and-a-half years. Rising income levels offset higher monthly instalments, and there are no signs of stress from an affordability point of view with rise in housing prices and higher interest rates. PNB Housing Finance, which entered the affordable housing finance space 11 months ago, has 97% of its retail loan assets below Rs 1 crore ticket.
