Banks have lost Rs 7 lakh crore due to declining realty demand
Banks are the major source of funds for the realty sector in India. Due to steady downfall in demand, the real estate companies were not able to repay their bank loans.
In a report submitted to the Lok Sabha, it is reported that almost 7 lakh crore of bank loans are still to be paid to the banks.
The banking sector is additionally facing concerns regarding deteriorating asset quality, rising provisioning costs, and increased loan restructuring.
The sector is also foreseeing a disturbing trend given the outstanding loan figures.
Moreover, out of the total loans recoverable from the banking sector, real estate sector accounts for the largest portion. As per the figures presented in the Lok Sabha, banks have to recover a whopping Rs 6,83,597 crore from the real estate sector alone.
Among the banks in India, ICICI Bank has to recover Rs 79,956 crore, which is almost 43% of its outstanding loan book. Axis Bank has to recover realty loans worth Rs 45,932 crore, nearly 36% of its outstanding loan book. Similarly, HDFC bank has to recover Rs 23,618 crore.
Country’s largest bank, State Bank of India has to recover Rs 1, 32,580 crore from the real estate business in India.
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Source: Your money site
bank loans, HDFC bank, home loan, Housing loan, ICICI Bank, real estate business in india, realty sector in india, State Bank of India
