New Delhi, 2 July: According to the RBI’s financial stability report, the percentage of total advances accounted for by residential dwelling loans increased to 14.2 percent in March 2023 from 8.6 percent in March 2012.
The study, which is a half-yearly assessment of the health of the country’s banks, also observed that the housing industry has witnessed good development, with sales increasing by 21.6 percent in the January-March period of 2022-23.
According to the survey, which was issued last week, many fresh releases have also contributed to the sector’s development.
It said that the percentage of commercial real estate (CRE) in total loans was about 2% to 2.9 percent over the aforementioned period.
“In March 2023, the banking system’s total exposure to real estate stood at 16.5% of total loans.” Loan defaults remain fewer than 2%, owing to the secured nature of these loans and loan-to-value (LTV) ratio rules,” according to the RBI study.
