Disruptions caused by the third Covid wave, according to Crisil Ratings, could shave as much as 200 basis points off the growth in assets under management of housing finance companies in the current and next financial years. However, growth would be greater than the average of roughly 2% in fiscal years 2020 and 2021, while slower than the broad-based 24% seen between fiscal years 2011 and 2019, according to a report. "The third wave of the COVID-19 epidemic might save as much as 200 bps (basis points) off Crisil Ratings' base case estimate of 9-11 percent CAGR in the AUM of home finance companies for fiscal years 2022 and 2023," according to the research.Home loans accounted for 71% of the total AUM (Assets under Management) of Housing Finance Companies (HFCs) of Rs 13.2 lakh crore as of March 31, 2021, followed by wholesale loans (18%) and Loans against Property (12%). (11%). Home loans will be the fastest-growing area, according to Senior Director and Deputy Chief Ratings Officer Krishnan Sitaraman, while lenders continue to be selective in the non-housing market, which includes wholesale and LAP (Loan against Property) loans. Following years of sluggish growth, the home loan market is likely to rise at a 12-14 percent compound annual growth rate (CAGR) in fiscal years 2022 and 2023, owing to improved sales, better affordability, and a desire for home ownership and larger homes, he said. "However, depending on the pandemic's spread, intensity, and longevity, the third wave might shave off 100-200 basis points from this rise," Sitaraman warned.