RBI concerned over hike in lending to realty sector
Ahead of the quarterly review of the monetary policy, the Reserve Bank of India has drawn attention to the sharp hike in lending to the commercial Real Estate India sector. Year-on-year growth in such lending has touched nearly 70 per cent , the RBI said in its Report on Macroeconomic and Monetary Developments here on Monday.
The outstanding loans to real estate jumped to Rs 46,295 crore as on May 25, 2007, from Rs 27,285 crore a year ago, a rate of growth that the RBI felt was still high.
However, the string of rate hikes by the RBI has begun to take effect on non-food credit growth. Non-food credit by scheduled commercial banks has moderated to 24.4 per cent year-on-year (Rs 3,67,258 crore) as on July 6, 2007, from 32.8 per cent (Rs 3,70,899 crore) a year ago.
On inflation, the RBI maintains its projection of 4-4.5 per cent. “The resolve, going forward would be to condition policy and perceptions for inflation in the range of 4-4.5 per cent. The objective would be conducive for maintaining self-accelerating growth in the medium term.”
Resource://moneycontrol.com
The outstanding loans to real estate jumped to Rs 46,295 crore as on May 25, 2007, from Rs 27,285 crore a year ago, a rate of growth that the RBI felt was still high.
However, the string of rate hikes by the RBI has begun to take effect on non-food credit growth. Non-food credit by scheduled commercial banks has moderated to 24.4 per cent year-on-year (Rs 3,67,258 crore) as on July 6, 2007, from 32.8 per cent (Rs 3,70,899 crore) a year ago.
On inflation, the RBI maintains its projection of 4-4.5 per cent. “The resolve, going forward would be to condition policy and perceptions for inflation in the range of 4-4.5 per cent. The objective would be conducive for maintaining self-accelerating growth in the medium term.”
Resource://moneycontrol.com
posted by Real Estate India at
10:05 PM
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