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A very topical piece on the bailout of real estate sector with PSU banks / public money indirectly during the 2008 global financial crisis.I say topical because we will see part 2 this year imo
equitymaster.com/ht/detail.asp?…
equitymaster.com/ht/detail.asp?…
well, some data which shows that this game is already on.
Direct assignment transactions for loans jumped to Rs. 1.28 lakh crore in FY19, 2.6x the amount seen in FY18. 66% of this was DA by housing finance cos. most of it is being picked up by PSU Banks (from an ICRA report)
Direct assignment transactions for loans jumped to Rs. 1.28 lakh crore in FY19, 2.6x the amount seen in FY18. 66% of this was DA by housing finance cos. most of it is being picked up by PSU Banks (from an ICRA report)
in line with an old thread that I'd written, this is 2008 redux. Bailout again for RE is very much happening and will continue.
around Rs. 84,000 cr of loans transferred from HFCs also tells you the extent of the pain. RE indeed is the too big to fail in India.
Nearly 66% of the DA volume (around Rs. 84,000 crore)
was undertaken by HFCs, of which 45% was done in Q3 FY2019 alone.
What more is left to infer?
was undertaken by HFCs, of which 45% was done in Q3 FY2019 alone.
What more is left to infer?
