1. Bank of Maharashtra - 15 days PLI
2. UCO Bank - 5 days PLI
3. Central Bank of India - 5 days PLI
4. Indian Bank - 10 days PLI
5. SBI - 10 days PLI
6. PNB - 10 days PLI
7. IOB - 10 days PLI
8-BOB- 15 days PLI
VISITOR FROM WORLD
Monday, May 13, 2024
Sunday, May 12, 2024
Friday, May 10, 2024
Tuesday, May 7, 2024
Home Loan Outstanding Hits Record High of Rs 27.23 Lakh Crore
According to data from the Reserve Bank of India (RBI) on ‘Sectoral Deployment of Bank Credit’, outstanding credit in the housing sector in India has increased by nearly Rs 10 lakh crore in the last two fiscal years. As of March 2024, the credit outstanding in the housing sector stood at a record Rs 27.23 lakh crore. This growth can be attributed to the strong revival of the residential property market following the COVID-19 pandemic, driven by pent-up demand.
Growth in Housing Credit and Real Estate Market Revival
The data from RBI shows that credit outstanding to the housing sector, including priority sector housing, has increased from Rs 19.88 lakh crore in March 2023 to Rs 27.22 lakh crore in March 2024. In March 2022, the credit outstanding was Rs 17.26 lakh crore. Additionally, credit outstanding towards commercial real estate stood at Rs 4.48 lakh crore in March 2024, compared to Rs 2.97 lakh crore in March 2022.
Experts from the banking and real estate sectors attribute this growth to the housing boom seen across all segments, with a particular emphasis on the affordable housing segment. They also mention the pent-up demand for buying homes in the last two years following the COVID-19 pandemic.
Factors Driving the Growth
Madan Sabnavis, Chief Economist with Bank of Baroda, highlights the government’s push for affordable housing as a key factor driving the high growth in home loans. He also mentions that the growth rate of home loans might taper down due to a higher base, but the segment is expected to remain robust.
Samir Jasuja, CEO and MD of PropEquity, a real estate data and analytics company, points out that the rise in housing loans outstanding is primarily due to the significant increase in the number of properties launched and sold in the last two fiscal years. He explains that major Tier-1 cities have witnessed high rates of price appreciation, contributing to an increase in the average loan size per property.
Strong Demand for Residential Real Estate
The demand for residential real estate in India has remained strong since 2022, after a period of subdued sales and stable prices that lasted for over a decade. The sector suffered from disruptions caused by the new realty law RERA, GST, and demonetization, which resulted in a trust deficit. However, the sector bounced back following the COVID-19 pandemic as the importance of home ownership was emphasized
Industry experts believe that the Indian real estate sector, which supports more than 200 ancillary industries, including cement and steel, will reach a milestone of USD 1 trillion by 2030.
Expectations and Outlook
Karthik Srinivasan, Senior Vice President and Group Head at rating agency ICRA, notes that retail housing loans deployed by banks have significantly increased in FY’24 due to the merger of Housing Development Finance Corporation Ltd (HDFC) with HDFC Bank. He expects housing finance to grow by 12-14 percent annually in the near-to-medium term, supported by buoyant demand.
Aakash Ohri, Jt Managing Director of DLF Home Developers, highlights the unprecedented surge in demand for homes in the past two years, especially in the aftermath of COVID-19. He emphasizes the shift in people’s perception of homeownership and the value of having a place to call home. Ohri attributes the growth in home loan advances to favorable government policies, attractive financing options, and the growing aspirations of the populace for homeownership
Mohit Jain, Managing Director of Krisumi Corporation, mentions the surge in demand for spacious homes with dedicated workspaces and outdoor spaces. He believes that the long-term outlook for the housing market remains strong, leading to strong growth in home loans.
Realtors’ Demands for Housing Boost
To further boost housing demand, real estate industry bodies CREDAI and NAREDCO have been urging the government to increase tax incentives on home loans. They propose enhancing the deduction allowed on payment of interest on home loans from the current Rs 2 lakh to Rs 5 lakh.
Overall, the housing sector in India has experienced significant growth in credit outstanding, driven by a revival in the real estate market and increased demand for residential properties. The sector is expected to continue its upward trend, supported by favorable government policies and strong aspirations for homeownership.
Sunday, May 5, 2024
CBI HAS FILEDA CHARGE SHEET AGAINST CMD OF BOI AND OBC
The Central Bureau of Investigation (CBI) has filed a charge sheet against Alok Kumar Misra, the former chairman and managing director (CMD) of Bank of India (BOI) and Oriental Bank of Commerce (OBC), along with 33 other individuals and companies. This charge sheet is related to the alleged bank fraud committed by Dewan Housing Finance Ltd (DHFL), which is worth nearly ₹35,000 crore. The fraud was allegedly carried out by the Wadhawan brothers, Kapil and Dheeraj, who ran DHFL. The charge sheet also exonerates 49 other companies that were originally named as accused in the case.
According to the CBI, Alok Kumar Misra allegedly received a benefit of ₹1.5 crore from DHFL in the form of a discounted flat for his son in Mumbai. This benefit was allegedly given to him in exchange for sanctioning loans in his capacity as the head of BOI and OBC. Misra served as the CMD of BOI from 2009 to 2012 and OBC from 2007 to 2009.
The CBI’s investigation revealed that between January 2010 and December 2019, a consortium of 17 banks extended credit facilities worth ₹42,871 crore to DHFL. The Wadhawan brothers allegedly siphoned off the funds to shell companies known as ‘Bandra Book Entities,’ causing a loss of ₹34,926 crore to the consortium. The charge sheet also names other companies and individuals who helped the Wadhawan brothers divert funds.
When will 5 Day Banking be introduced in India?
5 Day Banking: The demand for a 5-day work week by bank employees in India is set to be fulfilled in the near future. The Indian Banks’ Association (IBA) and employee unions have already signed an agreement in this regard, with only the government’s approval pending. Bank employees are optimistic that this approval will be granted later in 2024.
Background and Agreement
Bank employee unions, including the United Forum of Bank Unions, have been advocating for a 5-day work week with Saturdays off for some time now. Importantly, they have assured that this change will not result in a reduction in customer service hours.
To address this demand, a memorandum of understanding was signed between the Indian Banks’ Association (IBA) and bank unions in December 2023. The IBA represents both government-run and private lenders, and this agreement included a proposal for a 5-day work week, subject to government approva
The 9th Joint Note and Decision Process
On March 8, 2024, the 9th Joint Note was signed by the IBA and bank unions. The Joint Note, agreed upon by the IBA and the All India Bank Officers’ Confederation, outlined the transition to a 5-day week with Saturdays and Sundays off. While the IBA and bank unions have reached an agreement, the final decision rests with the government. Additionally, the proposal will also be discussed with the Reserve Bank of India (RBI), which regulates banking hours and interbank activities. At present, no official deadline has been announced by the government.
Expectations and Implementation
Some bank employees have expressed their expectation that the government will issue the necessary notification by the end of this year or early 2025. Once approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act. Reports indicate that if the 5-day work week is approved by the government, the revised working hours will also be announced, extending the workday by 40 minutes. The proposed working hours will be from 9:45 am to 5:30 pm.
Current Schedule and Previous Agreements
Currently, bank branches in India are closed on the second and fourth Saturdays of the month. The demand for all Saturdays and Sundays off has been ongoing since 2015. As part of the 10th Bipartite Settlement signed in 2015, the RBI and the government agreed with the IBA and declared the second and fourth Saturdays as holidays.
How many Rs.2000 notes are still with public?
The Reserve Bank of India (RBI) announced the withdrawal of ₹2000 denomination banknotes from circulation through a press release on May 19, 2023. The RBI periodically publishes updates on the status of the withdrawal of ₹2000 banknotes, with the most recent press release being issued on April 01, 2024. It is important to note that ₹2000 banknotes continue to be legal tender.
Deposit and Exchange Facility
The facility for depositing and exchanging ₹2000 banknotes was available at all bank branches in the country until October 07, 2023.
Exchange Facility at RBI Issue Offices
Since May 19, 2023, the facility for exchanging ₹2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices). Starting from October 09, 2023, the RBI Issue Offices also accept ₹2000 banknotes from individuals and entities for deposit into their bank accounts. Additionally, members of the public can send ₹2000 banknotes through India Post from any post office within the country to any of the RBI Issue Offices for credit to their bank accounts.
Reduction in Circulation
The total value of ₹2000 banknotes in circulation was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal was announced. As of April 30, 2024, the value has declined to ₹7961 crore. This means that 97.76% of the ₹2000 banknotes in circulation as of May 19, 2023, have been returned
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