State's NPAs in housing loans higher than national average

Tamil Nadu, which accounts for 10% of the country’s housing finance market, has more non-performing assets (NPAs) than the national average, according to data from Crif High Mark Credit Information Services, a credit bureau.

The statistics show that the State had nearly ₹1.6 lakh crore-worth of housing loans as of December 2017, while NPAs stood at 2.27%, when compared to the national average of 1.96%. In the first 9 months of the 2017-18 fiscal, loan disbursement totalled ₹30,000 crore.

Interestingly, the data also show that housing finance companies are more popular than public sector banks in Tamil Nadu.

According to the firm, 51% of the housing finance sector loan book in the State is with housing finance companies, while public sector banks account for just 35%. In comparison, the public sector banks and the housing finance companies each have a 40% share at the national level.

In the 2017-18 financial year thus far, the housing finance companies have disbursed nearly ₹17,000 crore, accounting for about 56% of disbursements in the State. Housing finance companies are more popular in Kancheepuram, Tiruvallur and Coimbatore, where they have disbursed 60% of the loans. Kolkata, Chennai and Ghaziabad have a higher level of NPAs in the affordable housing category (loans of up to ₹25 lakh).

Srinivas Acharya, MD, Sundaram BNP Paribas Home Finance, said the difference between the level of NPAs in Tamil Nadu and the national average was not a cause for concern.

“There might be delays, but ultimate recovery is not in doubt,” he added.

Link - The Hindu