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 of Year on Year Variation
Sr. No. Banks Mar-06 Mar-07 Mar-08 Mar-09 May-08 May-09 Mar-07 Mar-08 Mar-09 May-09
                Amount Percent Amount Percent Amount Percent Amount Percent
1 State Bank of India 2714 4082 6035 9620 6062 10467 1368 50.4 1953 47.8 3585 59.4 4405 72.7
2 State Bank of Bikaner & Jaipur 214 509 800 879 798 874 295 137.9 291 57.2 79 9.9 76 9.5
3 State Bank of Hyderabad 105 490 1035 1195 1111 1389 385 366.7 545 111.2 160 15.5 278 25
4 State Bank of Mysore 152 344 749 623 528 907 192 126.3 405 117.7 -126 -16.8 379 71.8
5 State Bank of Patiala 118 320 1279 493 1195 471 202 171.2 959 299.6 -786 -61.4 -724 -60.6
6 State Bank of Saurashtra 27 124 195 * 471 * 97 359.3 71 57.3 * * * *
7 State Bank of Travancore 175 403 596 546 561 555 228 130.3 193 47.9 -50 -8.4 -6 -1.1
8 State Bank of Indore 154 348 471 345 492 380 194 126 123 35.3 -126 -26.8 -112 -22.8
9 Bank of Baroda 263 365 513 1706 806 1894 102 39 148 40.5 1193 232.6 1088 135
10 Allahabad Bank 633 1687 2480 2455 2255 2569 1054 166.5 793 47 -25 -1 314 13.9
11 Bank of India 461 712 1852 4061 1859 4305 251 54.4 1140 160.1 2209 119.3 2446 131.6
12 Bank of Maharashtra 276 662 635 618 611 584 386 139.9 -27 -4.1 -17 -2.7 -27 -4.4
13 Canara Bank 853 1289 2639 3158 3608 3153 436 51.1 1350 104.7 519 19.7 -455 -12.6
14 Dena Bank 33 103 150 544 198 533 70 212.1 47 45.6 394 262.7 335 169.2
15 Indian Bank 370 803 1391 4027 1669 4036 433 117 588 73.2 2636 189.5 2367 141.8
16 Indian Overseas Bank 1709 3088 3280 4162 3967 4568 1379 80.7 192 6.2 882 26.9 601 15.1
17 Central Bank of India 249 989 1822 4118 1037 3744 740 297.2 833 84.2 2296 126 2707 261
18 Union Bank of India 896 1302 1629 3336 1969 3190 406 45.3 327 25.1 1707 104.8 1221 62
19 Punjab National Bank 1167 1448 5994 10369 2255 11030 281 24.1 4546 314 4375 73 8775 389.1
20 United Bank of India 320 265 330 724 343 791 -55 -17.2 65 24.5 394 119.4 448 130.6
21 UCO Bank 764 910 1049 508 615 705 146 19.1 139 15.3 -541 -51.6 90 14.6
22 Syndicate Bank 787 1650 1992 2512 2402 2649 863 109.7 342 20.7 520 26.1 247 10.3
23 Andra Bank 313 515 581 841 654 2030 202 64.5 66 12.8 260 44.8 1376 210.4
24 Corporation Bank 1607 2246 2582 2681 2369 3112 639 39.8 336 15 99 3.8 743 31.4
25 Oriental Bank of Commerce 512 1296 1494 3851 1243 4485 784 153.1 198 15.3 2357 157.8 3242 260.8
26 Punjab & Sind Bank 542 856 1124 1611 1208 1570 314 57.9 268 31.3 487 43.3 362 30
27 Vijaya Bank 446 729 3049 3921 3188 3711 283 63.5 2320 318.2 872 28.6 523 16.4
28 IDBI 148 18 1096 2544 1175 1424 -130 -87.8 1078 5986.7 1448 132.2 249 21.2
29 Standard Chartered Bank 699 2103 1943 2602 2100 2661 1404 200.9 -160 -7.6 659 33.9 561 26.7
30 Citibank NA 1182 399 346 407 352 484 -783 -66.2 -53 -13.3 61 17.6 132 37.5
31 HSBC 307 439 554 730 425 702 132 43 115 26.2 176 31.8 277 65.2
32 Deutsche Bank - 75 203 - 356 - 75 0 128 170.7 -203 -100 -356 -100
33 Calyon Bank 5 3 13 7 13 7 -2 -40 10 333.3 -6 -46.2 -6 -46.2
34 Axis Bank 883 1437 2593 4658 3514 4466 554 62.7 1156 80.4 2065 79.6 952 27.1
35 IndusInd Bank 45 63 99 299 78 278 18 40 36 57.1 200 202 200 256.4
36 ICICI 4432 7322 5920 5092 5712 4904 2890 65.2 -1402 -19.1 -828 -14 -808 -14.1
37 Bank of Rajasthan 403 318 525 543 525 524 -85 -21.1 207 65.1 18 3.4 -1 -0.2
38 Catholic Syrian 48 78 158 152 145 133 30 62.5 80 102.6 -6 -3.8 -12 -8.3
39 Karur Vysya Bank 139 244 212 380 273 384 105 75.5 -32 -13.1 168 79.2 111 40.7
40 Tamilnadu Mercantile Bank 8 28 32 161 36 166 20 250 4 14.3 129 403.1 130 361.1
41 Federal Bank 218 338 420 869 588 578 120 55 82 24.3 449 106.9 -10 -1.7
42 Karnataka Bank 636 910 758 820 723 829 274 43.1 -152 -16.7 62 8.2 106 14.7
43 South Indian Bank 84 148 234 238 223 230 64 76.2 86 58.1 4 1.7 7 3.1
44 ING Vysya Bank 367 640 479 556 486 523 273 74.4 -161 -25.2 77 16.1 37 7.6
45 Jammu & Kashmir Bank 929 1188 1111 1076 1103 981 259 27.9 -77 -6.5 -35 -3.2 -122 -11.1
46 HDFC 78 106 251 776 250 757 28 35.9 145 136.8 525 209.2 507 202.8
47 The Bank of Nova Scotia 2 - - - - - -2 -100 0 0 0 0 0 0
48 BNP Paribas 25 23 32 27 42 64 -2 -8 9- 39.1 -5 -15.6 22 52.4
49 ABN AMRO Bank 209 664 590 734 555 702 455 217.7 -74 -11.1 144 24.4 147 26.5
TOTAL 26707 44079 63314 91575 62148 94499 17373 65.1 19235 43.6 28455 44.6 32351 52.1
                               
  * State Bank of Saurashtra merged with State Bank of India      
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