Lending Trends in Real Estate for 2009-10
In the fiscal year 2009-10, several lenders, including Jammu & Kashmir Bank, Union Bank of India, ICICI, Bank of India, and Canara Bank, adjusted their lending policies for certain sectors of the real estate market. According to data from these banks, ICICI, the largest private sector bank, scaled back its lending to the realty sector by 17% and to capital markets by almost 10%.
Increased Lending by Public Sector Banks
- Bank of Baroda
- State Bank of India
- Syndicate Bank
- IDBI Bank These public sector banks increased their lending to the real estate sector by 34% to 46%.
Private Bank Lending Rankings
Among private banks, the top lenders were:
- YES Bank
- IndusInd Bank
- Development Credit Bank
- HDFC Bank
Mixed Bank Responses
There was a varied response from the banking sector. On one hand, around 10 banks increased their lending by 30% each. Conversely, 14 banks experienced a decline in lending. ICICI Bank notably reduced its lending by 9.6%.
Overall Lending Growth
Despite these fluctuations, the total growth in lending to the real estate sector was around 16.7% in the fiscal year 2009-10. Specifically, lending to the residential sector rose from 47.5% to 53%, while commercial mortgages decreased from 27.7% to 23.3%.