commercial real estate

RBI/2010-11/276 UBD.BPD. (PCB).Cir. No. 23/13.05.000/2010-11 November 15, 2010 The Chief Executive Officers of All Urban Co-operative Banks Dear Sir/Madam, Exposure to Housing, Real Estate Sector and Commercial Real Estate – Urban Co-operative Banks Please refer to our Circular UBD (PCB) BPD Cir.No.69/09.22.010/2009-10 dated June 9, 2010. As announced in the Second Quarter Review of Monetary [...] Full Article

It was proposed to increase the provisioning requirement for advances to the Commercial Real Estate (CRE) sector classified as ‘standard assets’ to 1.00 per cent with a view to building cushion against likely non-performing assets (NPAs). Accordingly, it has been decided to increase the provisioning requirement for advances to the CRE Sector classified as ‘standard asset’ to 1%. Full Article

In view of large increase in credit to the Commercial Real Estate (CRE) sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs). Accordingly, it has now been decided to increase the provisioning requirement for advances to the CRE sector classified as ‘standard assets’ from the present level of 0.40 per cent to 1.00 per cent. Full Article

A hawkish Reserve Bank of India (RBI), while staying away from hiking key rates like repo or reverse repo, hiked the statutory liquidity ratio (SLR) to 25% from 24%. The cash reserve ratio (CRR), the minimum amount banks need to park with the RBI, was also left unchanged. Full Article