The RBI Governor has finally woken up to the ground reality of Realty. The RBI announcement highlight was that it has increased the banks NPA provisioning for real estate loans from 0.4% to 1%. The increase in the provisioning norms has led to a sharp fall in the banking and real estate shares as Unitech plunged 6.66% and ICICI Bank slipped 4.57% as token for the melting counters. The biggest loser was the realty sector as the industry may see a roadblock in affordable housing dream.
The central bank has kept all the policy rates unchanged but has hiked SLR from 24% to 25%. The local stock markets could not give overwhelming response to the RBI’s loose money announcement and rather the picture got bleaker