Project delays to defaults, bankers flag issues on realty sector exposures

Public sector bankers dealing in housing finance said the sector is in transition, showing the effects of RERA

Banks have highlighted issues like delay in project completion, lack of fund sources, divergence of money, governance and defaults as reasons for their hesitation to take up additional exposure to the real estate sector.

This comes after Union cabinet minister Piyush Goyal’s statement that bankers will meet real estate players in a forthright.

The sector has been hit hard by demonitisation and the Real Estate Regulations (RERA). This is in addition to challenges like delays in project completion, questionable sources of funds and divergence of money and weak project management practices, bankers said.

A few days ago, while addressing a Confederation of Real