<p>Housing loan defaults in Kerala are drastically rising, banking sources told DH, with non-performing assets (NPAs) in the state at double levels in December 2021 than that of 2019.</p>.<p>Data from the State Level Bankers' Committee suggests that 67,901 home loan accounts with an outstanding amount of Rs 3,020 crore became NPAs as on December 2021 due to 90 days' default in repayments.</p>.<p>The financial stress caused to families due to Covid-19 and ensuing, prolonged lockdowns in the state are said to be behind the mounting default rates. Not just housing loans, many had availed other loans pledging their home property. Kerala had witnessed many suicides owing to financial stress during the lockdown.</p>.<p>The MSME sector suffered the worst during the pandemic which is sure to have a cascading effect on other priority sector loans, as many families depend on each MSME sector unit, said Bank Employees Federation of India president C J Nandakumar.</p>.<p>NPAs in housing loans as on December 2017 stood at 49,861 with a total outstanding amount of Rs 1,440 crore. This went up to 52,974 accounts with a total outstanding amount of Rs. 1,571 crore in December 2019. While the increase is only marginal in this period, by December 2021, the outstanding amount almost doubled to Rs 3,020 crore and the number of NPA housing loan accounts increased to 67,901.</p>.<p>Meanwhile, banking sector employees are aggrieved over interventions by local political activists against bank attachment proceedings. Banks initiate attachment proceedings as per legal procedures based on the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). But local political leaders often intervene citing social and humanitarian grounds, which often leads to tension.</p>.<p>Recently, Congress MLA Mathew Kuzhalnadan even broke the lock of a house attached by a CPM-controlled cooperative bank in Ernakulam district citing that the attachment was initiated while the head of the family, which had two minor girls, was in the hospital. He added that the girls were rendered homeless.</p>.<p>Mr Kuzhalnadan suggested that at least invoking of SARFAESI Act in loans of less than Rs 10 lakh outstanding should be suspended as a relief measure.</p>.<p><strong>Check out DH's latest videos</strong></p>
<p>Housing loan defaults in Kerala are drastically rising, banking sources told DH, with non-performing assets (NPAs) in the state at double levels in December 2021 than that of 2019.</p>.<p>Data from the State Level Bankers' Committee suggests that 67,901 home loan accounts with an outstanding amount of Rs 3,020 crore became NPAs as on December 2021 due to 90 days' default in repayments.</p>.<p>The financial stress caused to families due to Covid-19 and ensuing, prolonged lockdowns in the state are said to be behind the mounting default rates. Not just housing loans, many had availed other loans pledging their home property. Kerala had witnessed many suicides owing to financial stress during the lockdown.</p>.<p>The MSME sector suffered the worst during the pandemic which is sure to have a cascading effect on other priority sector loans, as many families depend on each MSME sector unit, said Bank Employees Federation of India president C J Nandakumar.</p>.<p>NPAs in housing loans as on December 2017 stood at 49,861 with a total outstanding amount of Rs 1,440 crore. This went up to 52,974 accounts with a total outstanding amount of Rs. 1,571 crore in December 2019. While the increase is only marginal in this period, by December 2021, the outstanding amount almost doubled to Rs 3,020 crore and the number of NPA housing loan accounts increased to 67,901.</p>.<p>Meanwhile, banking sector employees are aggrieved over interventions by local political activists against bank attachment proceedings. Banks initiate attachment proceedings as per legal procedures based on the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). But local political leaders often intervene citing social and humanitarian grounds, which often leads to tension.</p>.<p>Recently, Congress MLA Mathew Kuzhalnadan even broke the lock of a house attached by a CPM-controlled cooperative bank in Ernakulam district citing that the attachment was initiated while the head of the family, which had two minor girls, was in the hospital. He added that the girls were rendered homeless.</p>.<p>Mr Kuzhalnadan suggested that at least invoking of SARFAESI Act in loans of less than Rs 10 lakh outstanding should be suspended as a relief measure.</p>.<p><strong>Check out DH's latest videos</strong></p>