Indian banks set to see outstanding mortgage of 40 trillion rupees
The things are not going to be very rosy for the Indian banks in terms of mortgage. A report suggests that the total outstanding mortgage for the banks will be 40 trillion rupees by 2020. During this time, the margins will be forced to come down and that will put a lot of pressure on the profitability. This appeared in a report that appeared on Tuesday.
The report that was published by the Federation of Indian Chambers of Commerce and Industry along with Boston Consulting Group and Indian Banks' Association said that the margins are going to go down since the wholesale debt markets are deepening.
And this time it will be the state-run banks that will suffer the most and face most of the squeeze as compared to the private sector or the foreign banks. This shows that the outlook on the public sector banks is pessimistic.
The rate of mortgage has grown up from 2.5 per cent to 3 per cent for the private banks while for the public sector the margins has dropped from 3.2 per cent to 2.5 per cent.
