MUMBAI : Lenders want a senior, secured charge on the assets they fund under the recently proposed ₹25,000-crore real estate fund that aims to revive stalled projects, said the head of a large public sector bank. The Reserve Bank of India (RBI) has always seen commercial real estate exposure by banks as a riskier affair compared to other segments. Total commercial real estate loans by banks stood at ₹2.18 trillion as on 27 September, 16.6% higher than a year ago. The fund will be set up as a Category-II AIF (Alternative Investment Fund) debt fund registered with markets regulator Securities and Exchange Board of India (Sebi). According to data from real estate consultant firm Anarock, 218 real estate projects worth ₹1.77 trillion across large cities is undergoing resolution under the Insolvency and Bankruptcy Code (IBC).

Source: Mint November 18, 2019 17:03 UTC