The central government is emphasizing on the relief measures to help NBFCs and real estate which are full of stressed assets. The government wants to take some steps to maintain a fluid cash flow and to change the bad time of the Indian economy when banks are also taking back steps to lend money.
The government is willing to unburden the NBFCs from stressed assets by applying some measures on this condition where stressed assets of the realty sector which deals with Property in kolkata are increasing day by day. RBI took the approval from the PM office that they should permit the bank to take decisions on providing loans by not considering them as SMA and NPA and will go for one time recast for some real estate companies’ loans.
This one time recast of loans which will be conducted on some selective projects which are constructed fully but yet to be stalled due to low funding. It is for a certain point of time where the bank will not consider NPA or SMA. It is not applicable for all industries but for those projects where the bank will take decisions on the commercial judgment after consideration and approval of RBI.
This one time recast will help the real estate developers to repay the loans by not considering them as NPA or SMA. This will help them to have funds for market and agencies without any doubts on their profile. This will also help them to ensure the smooth cash flow and hence reflect positive growth in the Indian economy.
A survey proved that there are 4.58 lakhs housing units that are to be stalled in India. So the government decided to help them by setting these with an alternative investment of 25000 crores.
“The measures taken by the government will support the real estate sector to pay loans at low cost of interest taken for projects launching and will also help to stall the advanced projects in time. Funding will not be an issue for the companies anymore".
By LNN (Liyaans News Network)