StanChart Bank wants to reduce real estate exposure
Standard Chartered Bank is looking to reduce the commercial real estate exposure in India after receiving a mandate from global regulators to cut exposure towards the underperforming sectors in the country by June 2014.
The bank has been reaching out to borrowers through their relationship managers to close these credit limits. The bank’s current exposure towards the commercial real estate in India is to the tune of Rs. 1,500 crore. The bank is in talks with real estate developers and also the construction companies.
The bank, however, did not disclose the reason for reducing the exposure and cited it to be an internal matter. The bank informs that it continues to support other businesses and remains committed to the growth of businesses in India.
Source: Moneycontrol
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i think by doing this they will reduce their profits. the commercial markets are expected to boom this year as the demand is more and the supply is less. while its reverse for the housing market. so it will be down or stagnant this year.