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Realty bites: Property slump leaves beleaguered banks exposed

Updated : October 14, 2019 08:00 AM IST

A slump in the residential property market is leaving many builders struggling to repay loans to shadow lenders — housing finance firms outside the regular banking sector that account for over half of the loans to developers.
The number of property developers falling into bankruptcy has doubled during the past nine months, piling pressure on non-banking finance companies (NBFCs), commonly known as shadow lenders.
Shadow lenders will be highly exposed when loans worth roughly Rs 700 billion come up for repayment in the first half of 2020, as many builders may struggle to repay, Fitch's India Ratings said last month.
Realty bites: Property slump leaves beleaguered banks exposed

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