Profitability and productivity analysis of LIC housing finance limited and HDFC limited a comparative study

The Housing sedor has been, termed as ‘Engine of economic growth ’due to its tremendous potential to provide employment, generate income and its backward and forward linkages with other sedors of the economy. The availability of housing is one of the determinant factors of a nation's development. Apart from thefad that it provides shelter it is also an asset and wealth of human beings. The increased demand for more and more houses is an opportunity for the lending institutions. Realizing the importance ofthis sedor ofthe economy, the Government has adopted various policy measures as well as made provision in the five year plans. Amid these situations it becomes imperative to know the profitability and productivity performance of these lending institutions. The various categories of the housing finance institutions are public sedor, private sector, banks and bank subsidiaries. Present paper is an attempt to make a comparative study of two major housing finance institutions i. e. one from public sedor (LIC Housing Finance Limited) and the other from private sedor (Housing Development Finance Corporation Limited). The study has been done by making use of exponential growth rate and ratio analysis The findings show that profitability and productivity are interrelated. The profitability as well as productivity performance of Housing Development Finance Corporation Limited is better as compared to LIC Housing Finance Limited.