Banks post decline in housing finance

Bankers in Madhya Pradesh have posted a decline in direct housing finance during the last three years. According to Reserve Bank of India Guidelines each bank should attain a share of housing finance at 3 per cent of the incremental deposit of the previous year.

Various banks in Madhya Pradesh have reported a fall in disbursement cases since 2008. According to a data available with Business Standard, bankers received 23,076 cases till March 2007 and disbursed loan amount to 20,523 cases. By March 2008 there was a slight improvement and various banks financed 21,728 cases of housing loans against 24,547 applications. By March 2009 there was fall in the sanction and disbursement of loans and the same slipped to 20,741 cases against 21,974 applications.

The latest data says the bankers had sanctioned 19,137 cases against 20,437 applications and disbursed only in 18,794 cases. Similarly there is a fall under Golden Jubilee Rural Housing Finance Scheme in the state during 2006-07 as banks disbursed only 1,212 cases, while in 2007-08 the figure slipped to 976 and by 2008-09 the bankers sanctioned only 644 cases and disbursed loan in 635 cases. The last year figures also show a decline in sanctioned and disbursement of direct housing loans under the scheme wherein bankers sanctioned 874 cases.