Govt's fillip to realty sector to restart stalled projects
Real Estate

Govt's fillip to realty sector to restart stalled projects

To help real estate sector in the country to get bank finance for restarting work on stalled projects, the Union Finance Ministry is taking initiative and the banking sector is also getting ready for the same.

A senior executive with a public sector bank said that the government's decision, which is expected to help revive growth, is likely to be decided over the coming weeks. The main aim is to provide credit to unfinished real estate projects, especially those in the residential sector, so that they can be completed and find buyers,

Bank credit to the housing sector has grown by only 12.1 per cent year on year as per latest RBI data. This is far lower than the 15.9 per cent growth rate of aggregate bank credit. The issue was discussed by Union Finance Minister P Chidambaram last month when he held a review meeting with heads of public sector banks and financial institutions.

Sources concerned said that the Indian Banks Association (IBA), which is the umbrella organisation for banks, has already submitted a report on unsold real estate projects.

To help real estate sector in the country to get bank finance for restarting work on stalled projects, the Union Finance Ministry is taking initiative and the banking sector is also getting ready for the same. A senior executive with a public sector bank said that the government's decision, which is expected to help revive growth, is likely to be decided over the coming weeks. The main aim is to provide credit to unfinished real estate projects, especially those in the residential sector, so that they can be completed and find buyers, Bank credit to the housing sector has grown by only 12.1 per cent year on year as per latest RBI data. This is far lower than the 15.9 per cent growth rate of aggregate bank credit. The issue was discussed by Union Finance Minister P Chidambaram last month when he held a review meeting with heads of public sector banks and financial institutions. Sources concerned said that the Indian Banks Association (IBA), which is the umbrella organisation for banks, has already submitted a report on unsold real estate projects.

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