Banks may bear the brunt as real estate sector's troubles continue

These loans until now have been among the best performing assets for banks given their ability to generate higher yields

One after another, real estate firms are going bankrupt. News of how the sector is struggling to raise funds is on the rise. More importantly, barring commercial real estate in the office space, the rest of the sector – housing and other commercial projects such as malls and hotels, are far from seeing demand revival, with inventories piling up by the day. What this means for banks is that a potential asset quality trouble from this sector is in the making. These loans until now have been among the best performing assets for banks given their ability to generate higher