LIC Housing Finance Limited (LICHFL) plans to raise Rs.1000 Cr residential real estate fund. LIC Housing will raise the real estate fund thru ECBs.
LICHFL is to come up with Rs.1000-Cr real estate fund.
“LIC Housing Finance Limited (LICHFL) will raise a residential –oriented real estate fund thru external commercial borrowings (ECBs)” as told by Mr. V.K. Sharma CEO of LICHFL.
Insurance giant LIC- promoted LICHFL is considering its plan to raise a real estate fund around Rs.700- 1000 Cr thru ECBs. The decision is prompted by the RBI’s approval of housing finance companies to raise up to $1 billion. Continue reading →
The Reserve Bank of India on Wednesday clamped restrictions on Urban Co-operative Banks (UCBs) to exposure on realty sector up to 15% of their total deposits.
Photo by jeremy screen nameSpecified in the circular issued by the Reserve Bank of India , it said the total exposure of UCBs to realty sector, including individual housing loans and commercial real estate, should be restricted to 15% of total deposit resources of any bank.
It further mentioned that the loans granted against the security of any immovable property should be classified as Real Estate Loans. The source of repayment will determine whether the exposure is against commercial real estate. Moreover, the ceiling of 15% is to be reckoned on total deposits of a bank based on the audited balance sheet as on March 31 of the fiscal year 2009-10.
RBI’s latest move will benefit the real estate sector or not is only to be told by time.