RBI data shows surge in bank finance to real estate
Organised funding from banks to the real estate sector is gradually improving, especially in markets where developers are becoming more transparent and the Real Estate Regulatory Authority (RERA) has stabilised.
Bank funding to developers is up 6.3% over the previous year, with outstanding loans to the sector at Rs 1,87,200 crore at the end of August 31, 2018. The loans had witnessed a de-growth of 3.1% at the same time last year.
While this is a small portion of the total outstanding bank credit at Rs 92,47,786 crore that is growing at 12.38%, the quantum of money flowing into realty is set to increase, according to bankers and developers.