RBI guidelines on long-term infra bonds positive for banks – Moody’s

Rating agency Moody’s said the Reserve Bank of India’s new guidelines on exempting long-term from reserve requirements will allow banks to compete more effectively in the infrastructure loan market. “The new regulations are also likely to foster an improvement of banks’ competitive positioning vis-à-vis housing finance companies and infrastructure finance companies, because the banks’ lower cost of funding allows them to be much more competitive on pricing. This is especially relevant for plain vanilla mortgages, where price competition is already intense, forcing housing finance companies to operate with thin margins,”…

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Housing Registration down 10.5% in Mumbai in April – Report

The impact of a new government is yet to be felt by the Real Estate sector in terms of actual sales, but enquiries have increased, Karvy Stock Broking said. It noted that in Mumbai & Suburbs, housing registration fell 10.5% in April compared to March, and is down 20.2% compared to April last year. “This is 4th Month of continuous YoY de-growth since Dec-13 which saw a 11.7% YoY growth in registrations. Whilst the strong mandate to the new Government in May-14 is reflecting in stock price outperformance the sales…

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Potential housing bubble in Asia – Moody’s Analytics

Home prices could see correction in South East Asia, particularly if the rising trend continues for another couple of years, as capital has started leaving because of the tapering of the US Federal Reserve stimulus program, Moody’s Analytics has warned. Moody’s Analytics warned that prices are still rising sharply despite capital exiting Asian economies. “Property prices in Malaysia, Thailand and even Indonesia are still rising at a solid clip even as capital leaves the region,” it said. “There has been talk among Southeast Asian central banks of an emerging housing…

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DLF denies Times Now allegations on plot allotment

Real Estate major DLF Ltd has vehemently denied a report in Times Now that said that the company had been allotted 23 acres of land 3.5 km away from the Parliament of India at a throwaway price. The report, aired last night by the news channel, had claimed that even the Prime Minister’s office had objected to the handing over of the sensitive spot to a DLF subsidiary, reportedly for 65 crore (about $10.5 mln). But the objections from various corners were overruled for the allotment, the channel said.  “The…

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