According to RBI data, Indian banks’ real estate exposure grew 61% to touch Rs 90,765 crore Y-o-Y as on February 27, 2009, as compared to the growth of 26.7% during the corresponding period in the previous year. Foreign banks too, were not way behind when it came to lending the realty sector, registering a modest 41% growth for the 12 months up to February 27, 2009, as against 36% drop last year.
The growth of 40% in exposure to real estate firms by the foreign banks is an eye-opener when compared against their annual growth in total credit of meager 4% as on March 27, 2009.