Mumbai leads in real estate NPAs, followed by Delhi

An estimated Rs 7,700-crore worth of residential and commercial properties as non-performing assets (NPAs) with banks and financial institutions are up for sale and Maharashtra, largely due to Mumbai, tops the list for bad loans to both commercial andresidentialproperties.

According to data compiled byNPAsource.com,banks have total non-performing asset properties worth around Rs 27,500 crore registered from 27,626 units, of which, 2,200 are in the commercial category and nearly 11,000 in the residential segment.

The biggest chunk of NPA properties fall under the industrial land & building category, with a 65% plus share in value terms.

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State-wise, Maharashtra tops the list of most number of NPAs, with 563 units worth Rs 842 crore in commercial properties and 2,492 units worth Rs 838 crore in residential properties. This is followed by Delhi with Rs 686-crore worth of commercial and residential properties worth Rs 500 crore.

“Andhra Pradesh comes at number three in the residential properties ranking with Rs 497 crore worth of space up for sale under NPA properties to be auctioned by banks and financial institutions. Tamil Nadu, West Bengal and Uttar Pradesh are the next three states, with highest value of commercial and residential NPA properties,” said DK Jain, CMD of Atishya Technologies, which owns NPAsource.com.

However, in the residential category,the single largest NPA property happens to a farm house at New Delhi with a base value of Rs 40 crore. Mumbai has two NPA commercial properties with a base price value of Rs 26.5 crore and Rs 24.6 crore, the study said.

As NPAs in the corporate sector continue to grow, more commercial and residential properties will be put on the block by banks and financial institutions to recover their dues.

A slowdown in the real estate markets has further added to the woes of the lenders who will not be able to generate higher returns from the sale of mortgaged properties in the residential and commercial spaces, added Jain.