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Troubled real estate sector may face further stress after latest NHB diktat

NHB asks housing finance firms not to give loans where builders pay on behalf of borrowers

Big listed real estate companies drive profits home in a dull market
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The troubled real estate sector is likely to face further stress after the latest diktat from the National Housing Bank (NHB). The NHB has asked housing finance companies to desist from offering loans that involve servicing by builders on behalf of borrowers.  As financing gets more expensive, this will have an impact on launches and the Mumbai Metropolitan Market (MMR) will be the worst affected, said industry insiders. According to Niranjan Hiranandani, chairman and managing director, Hiranandani Communities, the move will affect project finance at a time when the liquidity ...