Residential housing loans’ share on total advances rose to 14.2 per cent in March 2023 from 8.6 per cent in March 2012, according to RBI’s financial stability report.
The report, which is a half yearly account of banks’ health in the country, also noted that the housing sector in itself has seen a healthy growth, as sales grew by 21.6 per cent in January-March period of 2022-23.
Also several new launches too have added to the sector’s growth, said the report, released last week.
During the aforementioned period, the share of commercial real estate (CRE) in total loans has been around 2 per cent to 2.9 per cent, it added.
“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.
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