Realty sector's Rs 1.35 lakh crore loan under stress

MUMBAI: Banks, NBFCs and housing finance companies have lent ૮ 16 billion to India's real estate, or Rs 1.5 lakh crore, under severe stress, but there is room for resolution on at least the principal amount, a survey has found. .

According to the survey, banks and financial institutions have an exposure of about ડો 100 billion, or Rs 4.5 lakh crore, in the realty sector, of which 9 per cent are stress-free. According to the survey, ૮ 12 billion (or 12 per cent) of India's total real estate lending is under severe stress.

This means that huge loans have been taken by the concerned developers and their ability to repay the loans is weakening due to various reasons and the recovery situation is looking bleak.

The contribution of NBFCs and housing finance companies (including trusteeship) to the total lending to real estate in India is 5 per cent. So, individually, banks have the largest share of 5 per cent of total realty loans, followed by housing finance companies at 4 per cent, NBFCs at 12 per cent and trusteeship loans at 12 per cent.

Most interestingly, the share of NBFCs and HFCs at the expense of banks has increased significantly since 2014, although banks have been more active than NBFCs over the last one or two years. Of which banks and housing fi. Companies are in good shape and 4% and 5% of their loan books are in comfortable condition. Of course, 4% of NBFC's credit is in the watch list, which is a serious matter. Grade-A lending to developers is safe.

Which is a relief because out of the total loans given to real estate, more than ૭૩ 3 billion has been given to them. Of this, 6 billion is secured and is stress-free.