Rajeev Chandrasekhar's official website - Member of Parliament

 

GOVERNMENT OF INDIA

Ministry of Finance

DEPARTMENT OF FINANCIAL SERVICES

 

RAJYA SABHA

UNSTARRED QUESTION NO. 2601

TO BE ANSWERED ON 28TH  JULY, 2009/06 SRAVANA, 1931 (SAKA) 

Exposure of the Banking Sector to Realty.

2601.

SHRI RAJEEV CHANDRASEKHAR

Will the Minister of FINANCE be pleased to state:-

(a)       the present total quantum and growth rate of real estate assets in the Indian banking sector for the last three years ending 31 March, 2009, bank wise; and

(b)       the steps Government is taking to mitigate the risks of over-exposure of the banking sector to realty?

 

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI NAMO NARAIN MEENA)

(a)       As reported by the Reserve Bank of India (RBI), the total bank-groupwise exposure of major Scheduled Commercial Real Estate Sector during the last three years and the growth of credit to this sector was as follows:-

Amount outstanding as at end of

(Rs. Crores)

Mar, 07

Mar, 08

Mar, 09

44,079 (65%)

63,314 (43.6%)

91,575 (44.6%)

 (Note : Growth of credit is given in brackets)

The bank-wise information is at Annexure – I.

(b):      As a prudential measure aimed at better risk management, the RVI, has advised banks to fix limits on their exposure to Real Estate Sector and has prescribed regulatory limits on bank’s exposure to individual and group borrowers.  The Banks should also ensure that the bank credit is used for productive construction activity and not for any activity connected with speculation in real estate.

Annexure - 1
Credit to Real Estate - Bank-wise
              (Rs. Crore)
  Outstanding Credit at the end ofYear on Year Variation
Sr. No.BanksMar-06Mar-07Mar-08Mar-09May-08May-09Mar-07Mar-08Mar-09May-09
        AmountPercentAmountPercentAmountPercentAmountPercent
1State Bank of India2714408260359620606210467136850.4195347.8358559.4440572.7
2State Bank of Bikaner & Jaipur214509800879798874295137.929157.2799.9769.5
3State Bank of Hyderabad1054901035119511111389385366.7545111.216015.527825
4State Bank of Mysore152344749623528907192126.3405117.7-126-16.837971.8
5State Bank of Patiala11832012794931195471202171.2959299.6-786-61.4-724-60.6
6State Bank of Saurashtra27124195*471*97359.37157.3****
7State Bank of Travancore175403596546561555228130.319347.9-50-8.4-6-1.1
8State Bank of Indore15434847134549238019412612335.3-126-26.8-112-22.8
9Bank of Baroda263365513170680618941023914840.51193232.61088135
10Allahabad Bank633168724802455225525691054166.579347-25-131413.9
11Bank of India461712185240611859430525154.41140160.12209119.32446131.6
12Bank of Maharashtra276662635618611584386139.9-27-4.1-17-2.7-27-4.4
13Canara Bank8531289263931583608315343651.11350104.751919.7-455-12.6
14Dena Bank3310315054419853370212.14745.6394262.7335169.2
15Indian Bank370803139140271669403643311758873.22636189.52367141.8
16Indian Overseas Bank170930883280416239674568137980.71926.288226.960115.1
17Central Bank of India2499891822411810373744740297.283384.222961262707261
18Union Bank of India8961302162933361969319040645.332725.11707104.8122162
19Punjab National Bank1167144859941036922551103028124.145463144375738775389.1
20United Bank of India320265330724343791-55-17.26524.5394119.4448130.6
21UCO Bank764910104950861570514619.113915.3-541-51.69014.6
22Syndicate Bank78716501992251224022649863109.734220.752026.124710.3
23Andra Bank313515581841654203020264.56612.826044.81376210.4
24Corporation Bank16072246258226812369311263939.833615993.874331.4
25Oriental Bank of Commerce51212961494385112434485784153.119815.32357157.83242260.8
26Punjab & Sind Bank542856112416111208157031457.926831.348743.336230
27Vijaya Bank446729304939213188371128363.52320318.287228.652316.4
28IDBI148181096254411751424-130-87.810785986.71448132.224921.2
29Standard Chartered Bank699210319432602210026611404200.9-160-7.665933.956126.7
30Citibank NA1182399346407352484-783-66.2-53-13.36117.613237.5
31HSBC3074395547304257021324311526.217631.827765.2
32Deutsche Bank-75203-356-750128170.7-203-100-356-100
33Calyon Bank53137137-2-4010333.3-6-46.2-6-46.2
34Axis Bank8831437259346583514446655462.7115680.4206579.695227.1
35IndusInd Bank4563992997827818403657.1200202200256.4
36ICICI443273225920509257124904289065.2-1402-19.1-828-14-808-14.1
37Bank of Rajasthan403318525543525524-85-21.120765.1183.4-1-0.2
38Catholic Syrian48781581521451333062.580102.6-6-3.8-12-8.3
39Karur Vysya Bank13924421238027338410575.5-32-13.116879.211140.7
40Tamilnadu Mercantile Bank828321613616620250414.3129403.1130361.1
41Federal Bank218338420869588578120558224.3449106.9-10-1.7
42Karnataka Bank63691075882072382927443.1-152-16.7628.210614.7
43South Indian Bank841482342382232306476.28658.141.773.1
44ING Vysya Bank36764047955648652327374.4-161-25.27716.1377.6
45Jammu & Kashmir Bank929118811111076110398125927.9-77-6.5-35-3.2-122-11.1
46HDFC781062517762507572835.9145136.8525209.2507202.8
47The Bank of Nova Scotia2------2-100000000
48BNP Paribas252332274264-2-89-39.1-5-15.62252.4
49ABN AMRO Bank209664590734555702455217.7-74-11.114424.414726.5
TOTAL2670744079633149157562148944991737365.11923543.62845544.63235152.1
                
 * State Bank of Saurashtra merged with State Bank of India