July 7, 2016

Subprime moment? Banks stare at realty loan defaults

About a fifth of the Indian banking system's assets are exposed to the real estate sector, according to analysts. The exposure, in the backdrop of a rise in unsold inventory and slump in sales, has bankers worried. "If property prices go down further, bank mortgages will be much more than the security banks are holding. If that happens, the probability of a default increases," a senior executive of a public sector bank said on condition of anonymity. 

Read more at: http://economictimes.indiatimes.com/articleshow/53071487.cms

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