Approximately USD 18 billion in loans out of total loans real estate The banking sector, NBFCs and home finance companies (HFCs) are under “severe” stress, according to a report released by the consulting firm on Monday.
Real estate consultant Anarock, however, said in his report that at least 67 percent or about $ 67 billion of total advances in the sector are now completely stress-free.
COVID-19 has had a cascading impact across all sectors and has seriously impacted India’s credit levels. real estate the industry was expected to grow substantially. However, the construction sector, especially the residential segment, is doing better than expected.
“By the end of 2019, at least 16 percent of the total real estate the loan of about US $ 93 billion has come under severe stress. Despite the devastating pandemic last year, only 18 percent of the $ 100 billion loan falls into this category. It is much better than other large sectors such as telecommunications and metallurgy. Anarock Capital MD and CEO Shobhit Agarwal said.
The consulting firm expects another $ 15 billion loan “is under some pressure but needs permission.
Non-bank finance companies and GFCs together account for 63 percent of the sector’s nearly $ 100 billion in outstanding loan portfolio, while banks contribute 37 percent, the report said.
Agarwal said at least 75 percent of all advances to A-rated developers are safe, and most loans to B- and C-rated real estate players need to be monitored.
Level A developers are currently active and reputable companies that have built over 3 million square feet of properties to date.
Level B players are those currently active with an established track record of more than 1 million square feet but less than 3 million square feet, while Level C includes developers with less than 1 million square feet. feet of building.
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