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Banks stand exposed

Last updated: March 29 2012
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  • Banks stand exposed

    Banks stand exposed to the debt. Prior to government reining in, ,Banks liberally lent money to RE companies in the hope of generating higher returns.

    Now some of these banks stand exposed to the tune of tens of thousands of crore rupees. As the RE companies look ripe to crash, the worst losers are banks , people invested in RE companies, people invested in banks that are exposed to the RE companies.

    This whole thing, combined with the slow industrial output and sluggish GDP will have a serious effect on the economy. Combine this with IT close down and you have a 2008 repeat . Not a good thing to think huh ?
  • #2

    #2

    Re : Banks stand exposed

    Reality rates should go down, as this will put pressure on RE companies with not many real buyers in the market... the home makers!

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    • #3

      #3

      Re : Banks stand exposed

      Whatever buyers are there are end users and are again dependent on bank loans...

      Originally posted by ektasrv View Post
      Reality rates should go down, as this will put pressure on RE companies with not many real buyers in the market... the home makers!

      Comment

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