Growth in Indian realty loans drops to 4%

The waning interest of the Indian banking sector towards real estate lending is reflected in the loan exposure growth rate, which declined to 4 percent from 23 percent last year.

According to a report by the Reserve Bank of India, the outstanding bank credit to the realty sector stood at Rs 5,31,300 crore till June this year and out of that the home loan segment accounted for 78 per cent.

The remaining 22 per cent is to the real estate developers.

"The lower growth had a significant impact on demand for commercial and residential property during the last year. While the initial signal was decline in absorption, it is fewer project launches now," said the RBI.

The report further said during the five-year period between FY08-FY12, the sales value of the real estate sector declined by 15 per cent but net profit fell by almost 67 per cent primarily on account of interest cost going up five fold.

"Even while property prices rose during this period, the industry has not managed to surpass the FY'08 sales value clearly indicating the larger dent on sales volume," it said.

For more.

Also Read

Tighter money supply strains Indonesian banks’ margins

BNPL provider Atome Finance doubles operating income in 2023

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit