Keeping in view the demand-supply gap, our favourable demography, increasing urbanisation and better growth prospects, the demand for housing finance will continue to grow. The challenge, therefore, is expansion of housing finance to a wider section of the population with the necessary safeguards to preserve financial stability.
Against this background, I will touch upon the sub-prime crisis in the US with the objective of distilling the lessons that can be drawn for the development of housing finance. I will then dwell upon the developments in housing finance in India with a particular reference to banks.