Amid Falling Credit Growth, Realty Borrowing Leaps 20 Percentage
The strong growth in credit to construction may be attributed to the relatively higher activity in the housing segment
May 09, 2015
Source : The New Indian Express


MUMBAI:Borrowing by the construction sector actually grew to almost 20 per cent in the year ended March 31, from its previous year’s level of 17.7 per cent, even though overall bank borrowing by manufacturing sector slumped to 5.6 per cent in year to March from 13.1 per cent a year earlier.
Manufacturing forms the largest chunk of non-food credit of banks with 43 per cent share, with services 23 per cent, which together give them two-thirds of overall bank credit.
Among other segments that grew faster than the average included food processing, infrastructure, basic metal and metal products and engineering. The strong growth in credit to construction may be attributed to the relatively higher activity in the housing segment and commercial real estate sector, said Care Ratings.
Yet, borrowing by manufacturing was not as low as bank credit data showed. Companies resorted to borrowing through commercial paper in the money markets, where rates are much lower compared with banks. Adding CPs to the overall borrowing increases credit growth to 7.6 per cent to manufacturing, said Madan Sabnavis, economist, Care Ratings.
Borrowing by retail almost maintained the earlier year’s level while loans to agriculture posted growth on a smaller share.
Among personal loans, while borrowing for purchase of house and automobile rose, a sharp jump was noticed in credit cards, indicating increase in spending by individuals. Yet, among industry the sharpest fall was to fertilizers and petrochemicals.

Latest Realty News

May 09, 2015
Mumbai: Brihan Mumbai Municipal Corporation (BMC) has, in the plan, proposed more than a three-fold increase in the total residential built-up floor area.
May 09, 2015
AGRA: The National Green Tribunal (NGT) has sought to know how some high-rise structures on the Yamuna river banks got the no-objection certificate
May 09, 2015
NASHIK: CREDAI Nashik and the Indian Institute of Architects (IIA), Nashik branch have welcomed the new proposed policy of the Transfer of Development Rights
May 09, 2015
Nagpur: Proposal for relaxing Occupancy Certificate norms which is mandatory for giving water connection to buildings
May 09, 2015
New Delhi: Realty firm Tata Housing will invest about Rs 600 crore to develop a new residential project
May 09, 2015
NEW DELHI: Every household in the city will now have have to pay a minimum environment compensation, NGT said
May 09, 2015
CHENNAI: A revival in economic sentiment, rising income levels of borrowers and cooling property prices have resulted in mortgage lenders reporting double-digit growth
May 09, 2015
New Delhi: A real estate firm has been directed by the apex consumer commission to pay Rs 4.77 crore to seven consumers
May 09, 2015
NEW DELHI: Housing and Urban Poverty Alleviation Minister M Venkaiah Naidu urged ministries to fast track the approval process for real estate projects
May 08, 2015
Pune: There has been no response from the state government regarding Pune's willingness to participate in the competition for Smart City

Latest Realty News Of State

Realty Talk's