Friday, May 7

Loans from NBFCs to developers halved in FY19: Report

NEW DELHI: The liquidity crisis in the NBFC sector was so grave that net loan disbursal by non-banking financial companies (NBFC) and housing financing companies (HFC) to realty developers declined by nearly 50 per cent in 2018-19 on a year-on-year (YoY) basis to an estimated amount of Rs 27,000 crore, a joint report by CII and JLL saud on Wednesday.

The report observed that default by leading NBFC, IL&FS, in scheduled payments led to a liquidity squeeze in the real estate sector since September 2018.

“In FY 2018-19, net disbursals by NBFCs or HFCs to real estate developers declined by almost half from Rs 52,000 crore in FY 2017-18 to an estimated Rs 27,000 crore in FY 2018-19,” it said.

The report, however, said that currently the scenario is not as negative as it was even a few months ago.

It noted that recovery would take time and the new credit discipline would benefit the real estate sector in the medium-to-long term.

“Also, the new government has taken cognizance of struggling NBFCs and introduced a few new schemes,” it said.

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