Reserve Bank of India anxiety: More loans for the real estate industry
Posted on: 10/Oct/2014 4:10:21 PM
The Deputy governor of the Reserve Bank of India, Mr. R. Gandhi has expressed his anxiety about the trend among the Indian banks to extend loans for the real estate and building construction industry.
He informed that 25% of the total loans extended by the banks belong to these 2 industries. He warned this should not exceed further.
He stated that over-dependence on a few selected industries is risky and extension of loans to more secure industrial fronts is the best policy to reduce this risk.
