Encouraged with the Policies and guidelines, Housing Loans disbursed below Rs. 2 lacs, formed a major segment of the Housing Loan portfolio, ultimately ending up with a whopping increase in the NPAs of such loans given below   Rs. 2 lacs. Higher NPAs were seen, on the Housing Loans released by State owned PSU Banks, when compared with the Housing finance companies.  Following are the observations made:

  1. There is a sharp rise in Housing Loans category below Rs. 2 lacs, in the PSU Banks, in 2016-17 and 2015-16 as per an RBI report.
  2. Housing Loans below Rs. 2 lacs category showed an increase in NPAs from 6.1 per cent to 8.6 per cent during the above mentioned period.

Stress Point

  1. Thrust by Government on affordable housing through policy measures like,  incentive schemes, accordance of infrastructure tag, interest subsidy scheme under PMAY (Pradhan Mantri Awas Yojana) have resulted in sharp rise in new housing projects in the affordable segment for low income groups.
  2. New Units in the affordable category showed an year on year growth in 2016-17.
  3. Affordable housing was the only segment in the residential real estate sector that saw a double digit growth.
  4. New Loans launched in the mid-range and high-end segments showed a downfall by 11.7% from the previous by 7%.
  5. The houses completed under PMAY between April-December 2017 showed a sizeable increase
  6. Investments to the tune of Rs. 1.72 lakh crore has been made under PMAY projects for construction of around 32 lakh houses.

Author: Admin Bankedge

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