RBI asks banks not to overstate value of realty
The Reserve Bank of India (RBI) on Friday came hard on banks for overstating realisable value of real estate properties they finance by including charges such as stamp duty and other levies.
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Bank lending to realty won’t decline
Though the Reserve Bank of India has laid out strict due diligence standards for banks for sanctioning loans to the real estate sector, industry experts believe lending to the sector will not decline.
RBI advises banks to go slow on loans to commercial real estate
The Reserve Bank of India (RBI) has asked banks to go slow on lending to the commercial real estate projects. The central bank fears an asset price bubble.
S&P warns rising property prices as credit risk for banks
Standard & Poor’s Rating Services on Monday, July 4, said the surge in real estate prices in some pockets in India could emerge as a credit risk for banks.
RBI makes real estate bank lending tough
The Reserve Bank of India has laid out strict and tedious due diligence standards for banks in sanctioning loans to the real estate sector.
RBI warns banks on real estate valuation frauds
Alarmed by inflated valuations of real estate properties for the purpose of loans, the Reserve Bank of India has asked all banks to submit an action-taken report on the issue.
RBI penalizes Manipal Co-operative Bank for favouring realty
The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Manipal Co-operative Bank Ltd., Manipal, Karnataka for violating RBI directives by granting loans for real estate purpose exceeding the single party exposure limit of 15 per cent of its capital funds.
Four realtors get sanctions for bank loans
At least four firms, Ansal Properties and Infrastructure Ltd (Ansal API), Emaar MGF Land Ltd, Kumar Urban Development Ltd and Paranjape Schemes Constructions Ltd, have received fresh sanctions from banks, although overall lending to the sector remains subdued.
RBI asks banks for escrow mechanism on realty loans
The Reserve Bank of India has asked banks to put in place an escrow mechanism that can ring fence their loans to real estate firms and keep a closer tab on the end use of funds. The RBI has been looking to tighten the lending norms for the real estate sector after last year’s bribery-for-loan scam. The scandal also exposed several unethical practices, such as diversion of funds.
RBI tightens banking funds to realty
Concerned over excessive flow of banking funds to the real estate sector, the Reserve Bank of India (RBI) has said lenders will provide loans only up to 80 per cent of the cost of property. Following the RBI directive, a home buyer will necessarily have to arrange at least 20 per cent of the property value on his own before seeking loan from a bank.