The completed and sold projects will start the repayment cycle, reducing bad loans.
The
permission to use the Rs 25,000-crore fund for the real
estate sector announced by the Union government on Wednesday to
revive projects declared non-performing assets or even sent to the
National Company Law Tribunal (NCLT) is likely to reduce the stress
on the books of lenders.
Senior officials of public sector banks said the fine print was still awaited, but the new fund will help move projects out of the “stuck” status.
The
completed and sold projects will start the repayment cycle, reducing
bad loans. Bankers said while lenders were getting repaid, clear
rules should be in place about who gets paid first.
Amit
Goenka, managing director and chief executive officer at Nisus
Finance, said the alternate investment fund proposed by the
government should have a bottoms-up approach.
The
affordable housing
projects stuck or delayed should get priority in funding, as that
would bring in a large number of competed dwellings in the market.
Along
with the AIF, the regulator and the government need to work on a
one-time restructuring scheme for good projects which are stuck or
delayed for want of funding and approvals.
This
will unclog many problem accounts and lead to substantial reduction
of stress for banks and NBFCs, said a source who did not want to be
named.
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