LIC Loan scam
Market sources said leading banks now lend to only credible builders for select projects, but have turned off the tap for most others in the construction sector. Money has suddenly stopped flowing into Mumbai real estate sector with banks and financial institutions tightening the screws on builders. By March 2011, Mumbai builders alone are scheduled [...] Continue Reading »
The Loan scam could have a short-term adverse impact on the real estate sector. Banks that have exposure to real estate are stepping up their due diligence. Such scrutiny may tighten realty firms’ liquidity positions as banks may go slow on loan sanctions. Though some realtors dismiss the problem as a minor aberration, there are [...] Continue Reading »
Loan scam to hit realty companies as bankers turn cautious in sanctioning fresh loans. The arrest of eight finance executives by the Central Bureau of Investigation on Wednesday on charges of taking bribes to sanction loans does not lead to a systemic risk but bankers turn cautious in sanctioning fresh loans for new property, forcing [...] Continue Reading »
