MUMBAI: The share of residential housing loans in total advances has increased over the last eleven years to 14.2 per cent in March 2023 from 8.6 per cent in March 2012, as per the RBI’s latest Financial Stability Report (FSR).
It also said the housing sector is witnessing a healthy growth with sales growing by 21.6 per cent in the fourth quarter (January-March) of 2022-23. In addition to rising sales, new launches also maintained healthy growth, reflecting strength in demand by end-users.
The share of residential housing loans in total loans has increased over the last eleven years to 14.2 per cent in March 2023 from 8.6 per cent in March 2012, the report said.
During this period, the share of Commercial Real Estate (CRE) in total loans has hovered between 2.0-2.9 per cent. “Total exposure of the banking system to real estate stood at 16.5 per cent of total loans in March 2023. Given the secured nature of these loans and loan to value (LTV) ratio regulations, loan defaults remain less than 2 per cent,” the RBI report said.
