Increase In NPAS On Home Loans
No Comments Sub Category:Realty News Posted On: Dec 04, 2014
Non Performing Assets or NPAs are on the increase of over Rs.1000 crore over the 6 months duration of the calendar 2014. The default payment by the home loan customers are on the rise. Around Rs.6200 crores is said to be the total of the various banks lending such loans to the customers.
Details
According to the finance ministry
- The outstanding home loan amount has increased from Rs 3,75,000 crore to Rs 4,02,802 crore, growth of 6.93 per cent.
- Non-performing assets (NPAs) has increased from 1.38 per cent to 1.54 per cent of advances in September.
- NPAs of 17 banks increased in the latest six-month period.
- Syndicate Bank’s rose from 3.7% to 5%, outstanding of Rs 9,592 crore.
- UCO Bank’s rose from 3.2% to 5.5%, outstanding being Rs 9,693 crore.
- Nearly 6% of Punjab & Sind Bank home loans have turned bad.
- Allahabad Bank, Bank of India, Bank of Baroda, Central Bank of India, Union Bank of India and United Bank of India has shown an improvement, reducing in home loan NPAs from the previous year.
- HDFC showed a marginal decline in bad loans. Gross NPAs as of September 2014 stood at 0.69% of the loan portfolio, down from 0.79% a year ago.
- State Bank of India, the largest home loan player, has managed to retain its NPA level at 0.9% with extended home loans worth Rs 13,193 crore, six months ended September 2014 and its total outstandings has reached Rs 148,502 crore.
- IDBI Bank has gone up marginally to 1.0% of its advances of Rs 24,803 crore.
- The first half of the fiscal witnessed a slow GDP growth.
- Rising inflation and high borrowing costs could have added to the increase in the home loan segment.
- The slow growth in income levels and job creation should have been main reason on the increase of the NPAs according to official of public sector bank
- Canara Bank rose from 2.1% to 2.5% of gross home loan advances.
- Andhra Bank rose from 2% to 2.5%.
- Indian Overseas Bank rose from 2.8% to 3.1%.
Article Source: The Financial Express
