Reuters reported exclusively that a severe cash crunch in India’s real estate industry could augur fresh strife for its banks. A slump in the residential property market is leaving many builders struggling to repay loans to shadow lenders – housing finance firms outside the regular banking sector that account for over half of the loans to developers. With about $10 billion of development loans coming up for repayment in the first half of 2020, according to Fitch Rating’s Indian division, the fallout could spread to mainstream banks that have lent money to the shadow lenders or invested in their bonds.
Reuters reveals Indian property slump leaves beleaguered banks exposed
13 October 2019, 12:00 am 1 minute
Type: Reuters Best