Wednesday, August 6, 2014

Century Infinity Multistorey Apartments for sale in Sarjapur, Bangalore Area Range 1198-2626 Sq.ft this project having 2BHK,3BHK and 4BHK Apartments.

Century Infinity  Multistorey Apartments for sale in  Sarjapur, Bangalore  Area Range 1198-2626 Sq.ft,this project having 2BHK, 3BHK and 4BHK Apartments.


Live an outsized life at the dreamy homes which are meticulously designed with futuristic lifestyle. Tailored with avant garde styles and sophisticated techniques, this residential address is exclusively dedicated to the IT savvy and people who are passionate of technology. Century Infinity comprises of 2, 3 and 4 BHK apartments that are attentively cut edged with modern suites inside the floor area of 1198 to 2626 square feet respectively. 


Swimming Pool with Toddler Pool
Children’s Play Area
24/7 Security
24/7 Water Supply
Rain Water Harvesting
Power Back-up

Interest rates on loans to Commercial real estate sector may move up with the Reserve Bank of India increasing the provisioning require-ment for advances to this sector from the present level of 0.4 per cent to I per cent. The RBI has expressed concern that loans to commercial real estate sector have the potential to become NPAs as this sector has witnessed large-scale restructuring of advances. It was felt that in view of the large increase in credit to the commercial real estate 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).

The Reserve Bank of India's move to increase provisioning norms for advances to the commercial real estate sector can be viewed either as part of a prelude to a tighter money policy or as a mere cautionary measure. The RBI offers explana-tions for both even while it places its monetary stance against a need for tightening.

As a specific regulatory measure the restoration of the standard asset provisioning of one per cent for commercial real estate loans is a safety norm since the value of loans restructured in the recent period in the sector has risen far above the average level. 

The aim therefore is both to protect banks against spurts in their non- performing assets by tempering robust lending to this sector and to prevent asset prices over- heating.

The degree to which commercial real estate activity gathers speed depends to a large extent on the robustness in economic activity. So far, fresh capacity expansion in the real economy has yet to pick up. But, when it does, the demand for fresh commercial real estate stock will generate demand for bank credit. The higher provisioning norm, even if it is merely a return to the standard, wills doubtless lead banks to raise interest rates. As the RBI's own experts have pointed out, banks are quicker to respond to signals for upward revisions in interest rates than they are to signals for a downward movement. Coupled with the fact that most banks adopt variable interest rates around their Benchmark Prime Lending Rates, lending to this sector may not necessarily damp on account of higher provisioning. Assuming the average interest rate for the sector does move up most borrowers will want to factor the higher cost of funds into their asset prices. Given the existing capacity in their formation, the end result may be quite the opposite of the RBI's stated objective of correcting that is lowering asset prices. Self- restraint in lending to this sector may help banks guard against default risks. Alternatively, the RBI could raise key rates in which case more than the commercial real estate sector will feel the pinch.

The UCA Bank Chairman and Managing Director has opined that by restoring the provisioning for commercial real estate to old levels, the RBI is indicating that it is happy with the recovery. But the step will make banks more cautious while lending to realty sector.

The Bank of Baroda Chairman and Managing Director is of the view that 0.6 per cent increase in standard provisioning does not amount to much and is unlikely to have an impact on interest rates while the State Bank of India Chairman is of the view that the move could push up the rates on loans to the commercial real estate sector by 2-3 basis points.

There was not much credit flow to the commercial real estate sector. So the relaxation in the provisioning norms was to increase the flow of credit to the sector and activity has picked up, the standard asset provisioning has been restored ICICI Bank Managing Director and CEO opined.

Banks will now be a little more cautious while lending to real estate players however, interest rates are at their lowest in recent times, and even a marginal hike due to this tightening in provisioning will not affect the overall sector seriously. Rather, it might help, as the Central Bank is trying to control the asset prices for end users. If well-implemented, this policy will benefit property buyers in the long run. The projected increase in inflation is in line with India's long- term inflation history, and is automat- ically factored into the markets and overall market sentiments. Therefore, this would not hamper the green shoots of recovery which are currently being witnessed after a protracted slowdown period over the previous year.

As far as real estate asset prices are concerned, tinkering with the volume of funds will not work in the absence of measures to make the market more transparent. The housing price index is a step in the right direction as is the draft model legislation for the regulation of the real estate sector.

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