Real estate sector poses concerns: RBI

The real estate sector has posed “some concerns” given the large and growing share of these loans in the credit portfolio of banks, its non-performing assets (NPAs) witnessing higher-than system level NPAs growth, and potential of greater slippages into NPAs, the Reserve Bank of India said in its Financial Stability Report.

“Going forward, the asset quality in this segment may come under further pressure given the increasing interest rate environment. There is also some anecdotal evidence of increasing inventory levels in the sector even as prices continued to remain elevated,” the RBI said.