Realty slump concerns lenders
As real estate sector in India faces a dip, domestic lenders with major retail loan are keeping an intense look at the situation.
While the hub of realty sector, Mumbai, is going through a slump, the lenders are concentrating on the new emerging markets – Pune, Bhopal, Indore, Surat, Nagpur and Ahmedabad.
LIC Housing Finance, the biggest player in the market until 2006, finds the market extremely challenging. Same is the case for HDFC, India’s second largest home financier after the State Bank of India (SBI), and Axis Bank.
Axis bank plans to increase retail advances to 30 per cent of the total advances, from 22 per cent at present by 2015. Most public sector banks are now turning their focus on the home loan segment to grow their advances book.
The experts maintain that the growth in the real estate market echoes the country’s economic growth. According to industry officials, while there is some drive in the residential section, fresh commercial real estate development has come to a standstill.
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Source: mydigitalfc.com
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