Rajan, in an interview with Arundhati Bhattacharya (Chief of SBI) shows some real gumption when AB asks him : “I was thinking if it is possible for a little while, could something of this [Teaser lower rate loan for housing, below base rate] could be allowed given the fact that this is one of the portfolio where NPAs are the lowest”. Rajan shot back, saying that: I do believe that if real estate developers who are sitting on unsold stocks bring down prices, that will be a very great help to the sector because once there is a sense that prices have stabilised, more people will be willing to buy. Basically – don’t ask me for concessions, the RE guys should cut prices and that will drive demand far more than teaser loans! Thats true; there is a lot of unsold stock (and secondary ready-for-sale stock) that’s in the market now, but prices are being held up because the developers aren’t yet up shit creek.… (Read On…)
[via Capital MindCapital Mind]
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