New Delhi: Banks and other financial institutions have a $ 100 billion real estate sector exposure, which 67 percent is safe while the remaining loans are under pressure or very stressed, according to the Anarock real estate consultant.
“At least 67 percent (or around $ 67 billion) of the total progress of the loan ($ 100 billion) to Indian real estate by the Bank, NBFC and HFC are currently completely free of stress,” Anarock Capital, anarock subsidiary, said in a statement on Monday.
15 percent (around $ 15 billion) are under pressure but has a scope for resolution with certainty at least the principal number.
“$ 18 billion (or 18 percent) of the loan as a whole to Indian real estate is under the ‘severe’ pressure, implying that there is a high increase by the developer concerned which has limited or very bad debt visibility because of many factors.” Said a statement that.
Anarock Capital said the contribution of the entire non-banking financial company (NBFC) and housing finance companies (HFCs), including Trusteeships, towards total loans to Indian real estate at 63 percent.
Individually, the Bank has part 37 percent, followed by HFCs around 34 percent, and NBFCS 16 percent.
About 13 percent of loans have been given under Trusteeships.
According to Anarock Capital, Bank and HFCs are far better placed with 75 percent and 66 percent of their loan books in a comfortable position.
“Not surprisingly, almost 46 percent of the total NBFC loans are on the monitoring list,” said the statement.
About 75 percent of the total loans to the developer level are safe.
“It presents a comfortable view because of the total loan given to real estate, more than USD 73 billion is given to class builders,” said the statement.