Shevgaon, renowned for cotton and sugarcane, now faces a wave of illegal portfolio management services promising high returns. Residents are taking loans and moving funds from safer investments to invest in these services, leading to financial catastrophes and suicides.
RBI restricts Urban Co-operative Banks' real estate exposure to 15% of total deposits, impacting commercial and housing loans.
RBI revises norms for loans to hotels and hospitals, excluding them from commercial real estate exposure. Provisions for commercial real estate reduced, but may increase.
RBI may relax provisioning norms for real estate loans, PSU banks request change to increase credit flow to the sector, citing low NPA rates.
The slowdown in the real estate sector has led to a decline in loan securitization, with debt mutual funds pulling back due to increased risks and waning demands for securities.