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Updated on: Monday, December 30, 2019, 08:22 AM IST

HFCs’ realty loans share jumps twofold since 2016

The share of builder loans has risen for non-banking lenders and private banks since 2016, as per the Financial Stability Report
23% increase in income tax refunds, 4.91 lakh crore distributed as loans by govt to improve economy. |

23% increase in income tax refunds, 4.91 lakh crore distributed as loans by govt to improve economy. |

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New Delhi: The loss of public sector banks' share in credit market, especially the realty sector, has been the gain for housing finance companies as their share saw doubling in the past three years to 23.81% as of June 2019, according to the latest RBI data.

The share of builder loans has risen for non-banking lenders and private banks since 2016, as per the Financial Stability Report (FSR) based on the analysis of 310 companies, even as the proportion of public sector banks' (PSBs) exposure to this segment nearly halved.

Over the past four years, total financing to real estate companies nearly doubled to Rs 2.01 lakh crore, shows the FSR released.

Housing finance companies (HFCs) have doubled their share in builder loans to 23.81% by June this year, compared with 12.17% in June 2016.

Meanwhile, the share of private sector banks rose to 30.41% from 23.62%, while the exposure of PSBs nearly halved to 24.34% as of June 2019, shows the FSR.

"While the aggregate exposure to real estate companies almost doubled to Rs 2.01 lakh crore, the aggregate share of HFCs and private sector banks increased, while public sector banks' aggregate share came down sharply," the report said.

Home financiers have collectively lent around Rs 47,900 crore to builders as of June 2019 up from Rs 12,770 crore in June 2016. But, their exposure in absolute terms did not change much, for state-owned lenders.

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Published on: Monday, December 30, 2019, 08:22 AM IST
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