Banks Seek Clarification from RBI on New Interest Rate System<http://news.indianpropertyreview.com> <http://fusion.google.com/add?source=atgs&feedurl=http://feeds.feedburner.com/IndianPropertyReview> ------------------------------
Banks Seek Clarification from RBI on New Interest Rate System<http://feedproxy.google.com/%7Er/IndianPropertyReview/%7E3/TqL6zbLZ65k/?utm_source=feedburner&utm_medium=email> Posted: 23 Mar 2010 10:49 PM PDT <https://feedads.g.doubleclick.net/%7Ea/H75Mgez-1l33yM8vjJtlF8owtfk/PN1BeAhT6pEE2Cqvo23wBS1nh-w/0/pa> <https://feedads.g.doubleclick.net/%7Ea/H75Mgez-1l33yM8vjJtlF8owtfk/PN1BeAhT6pEE2Cqvo23wBS1nh-w/1/pa> [image: INDIA-ECONOMY-RBI]Commercial banks are concerned over the Reserve Bank’s new interest rate system under which lending rates are to be linked to a base rate. They are seeking clarifications in an attempt to de-link home loans from the plan. This is because the expected base rate of around 8.5 to 9.5 per cent could lead to home loans being offered at 10 per cent or more. At present, home loans are available at 8.5 per cent for start-up customers at “teaser” rates offered by some banks. Bankers say home loan rates must be kept at affordable levels for consumers. “Though most concerns over the implementation of the new system have been addressed by the Reserve Bank of India, certain more clarifications are awaited,” the chairman of a public sector bank told Hindustan Times. Bankers say “teaser” rates to lure customers should be discontinued, but add that lending rates cannot be unreasonable either. “Affordable housing is an important issue and we are yet to get clarification from the central bank if home loans would also be linked to the base rate,” said M S Sundara Rajan, chairman and managing director, Indian Bank. The base rate system, due to be implemented from July 1, would replace the current practice of benchmark prime lending rate (BPLR) system. Nearly 72 per cent of all loans are currently priced below the BPLR. The new rules, aiming for transparency, forbid loans priced below the base rate. According to the draft of RBI guidelines, the actual rate a borrower will pay would involve the base rate and additional charges linked to costs, tenure and the risk premium specific to a borrower. The current BPLR is between 11.5 per cent and 12.5 per cent. Unitech to Focus on Real Estate-Looking to De-merge Non-Core Business<http://feedproxy.google.com/%7Er/IndianPropertyReview/%7E3/H5vVWtgEjxU/?utm_source=feedburner&utm_medium=email> Posted: 23 Mar 2010 05:49 AM PDT <https://feedads.g.doubleclick.net/%7Ea/H75Mgez-1l33yM8vjJtlF8owtfk/bvhzrBsdhg2cvHOG6cu24PI09cI/0/pa> <https://feedads.g.doubleclick.net/%7Ea/H75Mgez-1l33yM8vjJtlF8owtfk/bvhzrBsdhg2cvHOG6cu24PI09cI/1/pa> [image: Unitech-Wireless-Telenor1]Unitech Ltd, the second-largest real estate developer in the country, is looking to de-merge its non-core businesses in order to focus only on real estate, a source familiar with the development said. The company’s non-realty businesses include construction, special economic zones (SEZs), power, telecom and hotels. The company plans to unlock value through private equity investment or outright sale, the source said.Details such as valuation or the interested companies could not be ascertained immediately and a Unitech spokesperson declined to comment. The New Delhi-based developer has been trying to sell its telecom tower-making business, based near Nagpur in Maharashtra, for about Rs 700 crore as part of the de-merging plan. This arm initially operated through a tie-up with Hyundai. Unitech acquired Hyundai’s stake some years back. Unitech has also been planning to sell its non-core assets like hotels, commercial properties and land plots. Funds raised through the de-merger and sale of non-core assets could be used to reduce its debt, which stood at Rs 6,200 crore as of December. The developer had hinted that it will pay back Rs 1,000-1,200 crore and refinance the balance as long-term debt. About Rs 2,300 crore of Unitech’s debt is to mature by March 2011 and the company may pay Rs 350 crore in the current fiscal. You are subscribed to email updates from Indian Property Review<http://news.indianpropertyreview.com> To stop receiving these emails, you may unsubscribe now<http://feedburner.google.com/fb/a/mailunsubscribe?k=H75Mgez-1l33yM8vjJtlF8owtfk> . Email delivery powered by Google Google Inc., 20 West Kinzie, Chicago IL USA 60610 -- Dubai Properties Google Group is managed by: Farzad Mohammad / Senior Investment Adviser, Mob:0098 912 213 3890_moderator....@gmail.com You received this message because you are subscribed to the Google Groups "Dubai-properties" group. To post to this group, send email to Dubai-propertie@googlegroups.com To unsubscribe from this group, send email to dubai-propertie-unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/Dubai-propertie?hl=en To unsubscribe from this group, send email to dubai-propertie+unsubscribegooglegroups.com or reply to this email with the words "REMOVE ME" as the subject.
