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New Indian Express
24-05-2025
- Business
- New Indian Express
Puducherry unveils annual credit plan 2025–26 with Rs 12,100 crore outlay
PUDUCHERRY: The Annual Credit Plan (ACP) for the Union Territory of Puducherry for the financial year 2025–26, with a projected credit outlay of Rs 12,100 crore, was released on Thursday by Indian Bank, the convenor of the State Level Bankers' Committee (SLBC). The plan, covering the four regions of Puducherry Puducherry, Karaikal, Mahe, and Yanam was jointly launched by Lok Sabha MP V. Vaithilingam, Rajya Sabha MP S. Selvaganabathy, Indian Bank Executive Director and SLBC Chairman Shiv Bajrang Singh, and Secretary to Government (Finance), Ashish Madhaorao More. The ACP has been framed based on the assessed potential of various sectors and the credit performance of the previous year. A significant thrust has been placed on priority sector lending, with Rs 7,255 crore (60%) earmarked for agriculture, Rs 4,325 crore (35.73%) for Micro, Small and Medium Enterprises (MSMEs), and Rs 520 crore (4.27%) for other priority sectors.
The Hindu
22-05-2025
- Business
- The Hindu
State's total credit plan outlay for FY'26 set at ₹11,88,986 crore
The total credit plan outlay of Karnataka for the current fiscal, 2025-26, has been set at ₹11,88,986 crore, at the 169th State Level Bankers' Committee (SLBC) meeting held at the Vidhana Soudha here on Thursday. Of this plan outlay, the priority sector's (comprising agriculture, micro, small and medium enterprises, export credit, education, housing, social infrastructure, and renewable energy) credit requirement would be ₹4,38,016 crore, 36.84% of the total credit, for the current fiscal. Of this, agriculture would have a credit share of ₹2,22,204 crore, claiming 50.73% of the priority sector credit, crop production loans ₹1,40,108 crore, MSME credit ₹1,90,891 crore, education loans ₹2,222 crore, housing loans at ₹11,678 crore, while other sectors' credit for the year would be ₹11,022 crore. The meeting was chaired by Uma Mahadevan, Additional Chief Secretary and Development Commissioner, Government of Karnataka, who also launched the Annual Credit Plan (ACP) for FY2026. Ms. Mahadevan said there was a need for universal coverage under social security schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). She also urged all banks to onboard IIBF-certified (Indian Institute of Banking & Finance) NRLM (National Rural Livelihoods Mission) SHG women as banking correspondent sakhis, thereby enhancing last-mile delivery of banking services. She commended the efforts of SLBC, RBI, NABARD, and all participating financial institutions for their collaborative efforts in the formulation of the ACP. She encouraged effective implementation of the plan to achieve the credit targets and promote inclusive and equitable growth across Karnataka. At the SLBC meeting, S.K. Majumdar, executive director, Canara Bank, instructed banks to dispose of the pending applications of government-sponsored schemes well within the timelines. Also speaking on the occasion, Vishal R., Secretary to Government (FR), Finance Department, GoK, stressed the importance of coverage of all eligible population under the ambit of Jan Suraksha schemes. Sonali Sen Gupta, Regional Director, Reserve Bank of India congratulated all stakeholders on the timely conduct of DCC/DLRC meetings, and Surendra Babu, Chief General Manager, NABARD appreciated stakeholders for the launch of ACP in line with NABARD'S Potential Linked Plan.
Time of India
22-05-2025
- Business
- Time of India
Home loan borrowers drop 35% in FY25, but average mortgage size grows in Gujarat
AHMEDABAD : Gujarat 's housing finance market is presenting a paradox — the total money lent is rising, but the number of borrowers is shrinking. In FY 2025, the total housing finance disbursed in the state rose 8.9% to Rs 58,399 crore, up from Rs 53,590 crore in FY 2024. However, the number of loan accounts dropped sharply by over 35%, from 6.9 lakh to just 4.46 lakh, according to data from the State Level Bankers' Committee (SLBC) – Gujarat. The numbers point to a shifting trend: fewer people are buying homes, but those who are, are borrowing more. The average loan ticket size is increasing — reflecting either costlier homes or borrowers stretching their finances further. "The demand for new homes has clearly dipped, especially in the affordable and mid-income segments over the past six months," said a senior official with SLBC-Gujarat. "The HDFC-HDFC Bank merger had temporarily inflated the number of accounts and disbursals in the previous fiscal. What we're seeing now is a high-base effect and a genuine slowdown in entry-level housing demand." Developers in Ahmedabad confirm the trend. While luxury housing continues to see traction — particularly from NRIs and high-net-worth individuals seeking stable investment avenues — mid-tier and affordable housing projects are witnessing a slowdown in footfalls. This pattern is echoed across Gujarat. Housing finance companies are disbursing larger loans, but to fewer customers — a sign of consolidation in demand and possibly a growing mismatch between supply and affordability. "Post-Covid, demand for homes had soared as people looked to upgrade or move away from renting. But over the past three years, land and construction costs have pushed home prices up significantly. Incomes haven't kept pace — so the market is cooling. Currently, there is a liquidity crisis in the market. Affordable segment is struggling even as the premium homes segment is faring comparatively better," said Viral Shah, vice president, CREDAI Ahmedabad. Kamal Vataliya, vice-president of the Ahmedabad Realtors' Association, adds that surging equity markets have also altered investment behaviour. "Over the past three years, stock markets have reached record highs. Many traditional real estate investors diverted their funds into equities instead of using them as down payments for homes. This too delayed purchase decisions." While the average home loan ticket size has increased by 66% over the past five years, experts caution against interpreting it as a sign of growing prosperity. "It's not always that people are buying bigger or better homes. Often, they're simply paying more for the same product. Higher property prices are forcing borrowers to stretch their finances," a banking industry source pointed out.
Time of India
22-05-2025
- Business
- Time of India
Home loan borrowers drop 35% in FY25, but avg mortgage size grows
Ahmedabad: Gujarat's is presenting a paradox — the total money lent is rising, but the number of borrowers is shrinking. In FY 2025, the total housing finance disbursed in the state rose 8.9% to Rs 58,399 crore, up from Rs 53,590 crore in FY 2024. Tired of too many ads? go ad free now However, the number of loan accounts dropped sharply by over 35%, from 6.9 lakh to just 4.46 lakh, according to data from the State Level Bankers' Committee (SLBC) – Gujarat. The numbers point to a shifting trend: fewer people are buying homes, but those who are, are borrowing more. The average loan ticket size is increasing — reflecting either costlier homes or borrowers stretching their finances further. "The demand for new homes has clearly dipped, especially in the affordable and mid-income segments over the past six months," said a senior official with SLBC-Gujarat. "The HDFC-HDFC Bank merger had temporarily inflated the number of accounts and disbursals in the previous fiscal. What we're seeing now is a high-base effect and a genuine slowdown in entry-level housing demand." Developers in Ahmedabad confirm the trend. While luxury housing continues to see traction — particularly from NRIs and high-net-worth individuals seeking stable investment avenues — mid-tier and affordable housing projects are witnessing a slowdown in footfalls. This pattern is echoed across Gujarat. Housing finance companies are disbursing larger loans, but to fewer customers — a sign of consolidation in demand and possibly a growing mismatch between supply and affordability. "Post-Covid, demand for homes had soared as people looked to upgrade or move away from renting. But over the past three years, land and construction costs have pushed home prices up significantly. Tired of too many ads? go ad free now Incomes haven't kept pace — so the market is cooling. Currently, there is a liquidity crisis in the market. Affordable segment is struggling even as the premium homes segment is faring comparatively better," said Viral Shah, vice president, CREDAI Ahmedabad. Kamal Vataliya, vice-president of the Ahmedabad Realtors' Association, adds that surging equity markets have also altered investment behaviour. "Over the past three years, stock markets have reached record highs. Many traditional real estate investors diverted their funds into equities instead of using them as down payments for homes. This too delayed purchase decisions." While the average home loan ticket size has increased by 66% over the past five years, experts caution against interpreting it as a sign of growing prosperity. "It's not always that people are buying bigger or better homes. Often, they're simply paying more for the same product. Higher property prices are forcing borrowers to stretch their finances," a banking industry source pointed out.
Scroll.in
20-05-2025
- Business
- Scroll.in
Don't demand credit score for farm loans, Maharashtra CM Devendra Fadnavis tells banks
Maharashtra Chief Minister Devendra Fadnavis on Monday warned banks against demanding that farmers submit their credit scores to get agricultural loans, reported The Indian Express. 'If credit is not provided to farmers, it has repercussions on the economy and it leads to farmers' suicides,' the chief minister said at the 167th State Level Bankers' Committee meeting, according The Hindu. Noting that the state government had previously registered first information reports against banks asking farmers for their credit scores, Fadnavis asked those attending the meeting to urgently find a solution to the problem. The chief minister had in June warned nationalised banks that FIRs would be registered against them if they insisted on credit scores for farm loans. This came against the backdrop of several farmers being denied loans, despite being eligible, according to The Indian Express. On Monday, Fadnavis highlighted that the Reserve Bank of India had issued guidelines regarding farm loans and said that agriculture should be treated as a business, not just as a supportive sector. The chief minister called on banks to increase credit to farmers, particularly with a favourable monsoon forecast. 'The state does not face [a] drought situation this year,' the chief minister was quoted as saying by The Hindu. 'The crop production will be good. All the nationalised banks should pay attention towards increasing credit to the farmers. Agriculture is an important part of the State's economy. It cannot be ignored.' To be eligible for farm loans, farmers are required to own or lease agricultural land for a minimum period set by the bank. While land is typically used as collateral, this requirement is usually waived for loans up to Rs 2 lakh. In cases where farmers do not own land, banks prefer group lending. If a farmer defaults, banks may restructure loans, offer one-time settlements, or pursue recovery via debt recovery tribunals or lok adalats. Loans become non-performing assets if they remain unpaid for over 90 days. For short-term crop loans, defaulting for two crop seasons makes it a non-performing asset, while for long-term crops, one season of default is enough to qualify it as an NPA.
