Go slow on credit to realty: FM to Banks

December 7, 2006	(Be the first to rate this story!)  Loading ...
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Finance minister Shri P. Chidambaram has asked banks to “go slow” on their credit exposure in the real estate sector which has been witnessing unprecedented growth for the last 3-4 years.

He wants all the banks to re-balance their credit portfolios and real estate lending requirements to be slowed down. Indeed, he makes a modest suggestion for the banks to lend more to finance country’s gross domestic product (GDP) growth.

During the programme organized by United Bank of India (UBI), Chidambaram expresses his plans to curb the country’s overheating economy. Few days back, RBI’s Governor YV Reddy came forward to take necessary actions to ensure sustainable growth. During July-September, India’s economy has shown a mark improvement as it grew by 9.2% from a year earlier.

Chidambaram professes his firm belief in the growing momentum of the country and said our GDP is likely to grow over 9% in the approaching years.

Although, the fast flourishing India has to accomplish many feats but our economy is growing at a rapid pace and this needs to be maintained to ensure bright future prospects, says FM.

Bank loans have been growing at an annual rate of about 30%, and the RBI has asked banks to cool the credit growth to near 20%. Also, the governmental banks are required to upgrade technically to compete with the private banks and other nationalized banks, says Chidambaram.

News Published Under:   Real Estate India, Banking and Finance |

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