Indian Banks ask Developers to Sell Properties

Indian banks and other lenders are telling developers to sell properties to prevent defaults on loans, citing bankers it didn’t identify. The lenders are also telling real-estate companies to lower prices to attract buyers, the newspaper said. Banks and other financial institutions have given 750 billion rupees ($15 billion) and mutual funds another 250 billion rupees as loans to developers, it said.

Borrowing costs at a seven-year high and an increase in real-estate prices are deterring property buyers in India. The real-estate companies are still resisting lowering prices, the report said, citing an unidentified official at a bank. Most developers paid interest on their loans in the quarter ended Sept. 30 to local banks, though one hasn’t paid interest to an overseas fund.

News Published Under:   Banking and Finance |

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