Home Finance Posts 29% Growth At Rs 53,685 Cr During 2003-04

New Delhi, July 26 | Updated: Jul 28 2004, 04:49am hrs
Riding high on housing boom, the loans extended by banks and finance companies together logged 29 per cent growth to Rs 53,685 crore during 2003-04, the National Housing Bank said on Monday.

In a release, NHB, the apex supervisor for housing finance, said the aggregate loan disbursals by housing finance companies (HFCs) was Rs 20,869 crore and that by scheduled commercial banks was Rs 32,816 crore in the last fiscal, thus taking the total to Rs 53,685 crore.

HFCs and banks had extended house loans worth Rs 41,385 crore during 2002-03. The aggregate disbursals of HFCs grew by 17 per cent to Rs 20,869 crore in 2003-04, as against Rs 17,832 crore in the previous fiscal.

Loan disbursals of scheduled commercial banks grew by 39 per cent for banks (SCBs) to Rs 32,816 crore in the last fiscal, as against Rs 23,553 crore in 2002-03, it said.

Burgeoning middle class, rising purchasing power, changing demographies, rising nuclear families, stable real estate prices and softer interest rate, coupled with delinquency rate spurred the growth in the housing sector, it said. NHB provided assistance of Rs 3,300 crore in the form of refinance to banks, finance companies, cooperative sector institutions and direct finance to public agencies.

The NHB said of the total refinance, as much as 52 per cent of it went towards providing assistance to rural housing.