Banks to go slow on realty lending

Banks to go slow on realty lending

Some public sector banks are contemplating revoking loans already sanctioned to real estate companies. This follows concerns raised by the Reserve bank of India at the pace of growth of bank credit to real estate companies. The apex bank had recently raised the risk weightings for capital adequacy purposes and provisioning requirements for such exposure. Finance Minister P Chidambaram too has touched on the subject in his meeting with public sector bank chiefs.

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