Looking to the further fall on the realty and the Banks transaction Indian Bank is asking to relax more on the risk – weight norms especially on the home loans up to Rs 20 lakh. According to the sources of www.propertykhazana.com till date RBI has imposed a risk weightage of .76 per cent for all loans with in the boundary of Rs 20 lakhs and further the bank has to make provisions before extending advance to its borrowers.
Putting an expert comment on the issue the K Ramakrishnan – CE of Indian Bank Association states that “RBI should immediately remove the earlier provisions and extend the limit up to Rs 20 lakhs as to make banks free from advance dealing with such extension”. In addition the bank team has also suggested modest relaxation measure to cure the drying up funds due to the global financial meltdown and this causes the overseas parties to halt the money transfer to the local traders. A separate norm for the export oriented firms is also a part of the discussion with RBI Governor D Subbarao as per the sources of www.propertykhazana.com.
“Despite the slow growth in the current business the Indian bank has done well in their lending for the current period of economy which rose to 24.5 percent as compared to the last year’s reading of 22.4 percent” as stated by Ramakrishanan. At the same time he also informs that the bank has also increased the credit deposit to 74.12 percent. For more updates visit www.propertykhazana.com.
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