Loans To Real Estate Sector BY NBFCs Halves in FY19: JLL
New Delhi:Net disbursals by Non-Banking Financial Companies(NBFCs)/Housing Finance Companies (HFCs) to real estate developers dropped by almost half from Rs 52,000 crore in financial year 2017-18 to Rs 27,000 crore in 2018-19 fiscal, according to a research report by property consultant JLL.
Small and medium players among the NBFCs/HFCs have been actively lending in the range of Rs 30- 70 crore after the short halt after the crisis that gripped the NBFC/HFC sector. There is a decline in the average lending ticket size after the crisis. Previously, most of the lending was taking place in the ticket size of Rs 150 crore or above. About Rs 4,000 crore has been lent by small and medium NBFCs/HFCs in the October 2018- March 2019 period, according to the report.
The fact that Union Budget 2019-20 has made a provision of liquidity of Rs 1 lakh crore to the NBFC sector highlights the pain in the segment. It also shows that the government is cognizant of this pain. However, NBFCs are likely to face challenges for the next few quarters. And the impact of the government’s measure will take some time to yield results. As a result NBFCs will witness recovery toward the beginning of the year 2020.” said Ramesh Nair, CEO & Country Head, JLL India.