Bankers said Reserve Bank’s decision to up commercial real estate property loan provision of lenders may force them to hike lending rates to the sector in the near term.
Banks are contemplating a rate hike of anywhere between 0.5-1 per cent in commercial real estate loans in the near future to pass on the burden of high provision to customers, a senior official of state-run, Union Bank told PTI here.
This (high provisioning) will really impact the credit flow to the real estate sector and will leave no option to banks but to increase their lending rates on commercial real estate loans by 0.5-1 per cent,” the official said on condition of anonymity.
More : economictimes.indiatimes.com
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