Keki Mistry: HDFC Model Unreplicable; Optimistic on Housing, Tax Cuts

• Keki Mistry, former VC & CEO of HDFC Ltd, states HDFC's model, built on trust and low operational costs (under 8%), is tough for other HFCs to replicate due to their high cost structures.
• Mistry is optimistic about the housing sector, expecting demand to pick up in 2025-26, driven by consumer confidence and good agriculture in smaller towns.
• He anticipates low interest rates, eased liquidity, benign inflation, and strong GDP growth for 2025, and hopes for personal income tax cuts (25-30%) in 2026 to spur investment.
• Mistry believes AI is too early to sweep financial services, as digital loan adoption is low and personal interaction remains crucial for trust and appraisal.
• He notes a surge in equity investments (SIPs) but clarifies that bank deposits are not depleting; high food inflation impacts savings more than stock market trends.

Why It Matters: HDFC's unique model is hard to replicate; Mistry sees a positive outlook for housing and economy.