21.8% of SBI customers avail moratorium facility on loan EMIs
15 Days Optimum Time For States To Transport Migrants Home: Top Court
After Telangana, now Karnataka launches COVID-19 tracking platform developed by NASSCOM
Coronavirus impact: Govt may soon allow home delivery of petrol, CNG
Lockdown 5.0: Amit Shah meets PM Modi to discuss way forward; guidelines to be issued soon
Coronavirus in India: 7,466 cases in 24 hours, highest 1-day jump, death toll at 4,706; Maharashtra worst-hit
Lockdown 5.0: Centre may let states decide on restrictions post-May 31
SBI cuts fixed deposit rates by 40 bps; check out new rates
Coronavirus vaccine update: India to begin human trial in next six months, says ICMR
India's GDP to contract 6.8% in FY21 due to coronavirus lockdown: SBI
Himachal Pradesh Extends Lockdown Till June 30
Coronavirus vaccine update: After Moderna, CanSino Biologics claims positive results in early trials
No Exam For Remaining Subjects Of Class 10, Class 12 Exam In June: Madhya Pradesh Chief Minister
International Flights May Start "Even By Middle June": Aviation Minister
Pakistan Plane Crash: PIA Flight With 99 On Board Crashes In Karachi Minute Before Landing
RBI rate cut: For home loan of Rs 50 lakh, EMI to reduce by this much
Coronavirus impact: MSMEs demand loan moratorium till March 2021
Domestic Flights To Resume From Monday In "Calibrated Manner", SOPs Soon
Trump tells WHO to prove 'independence' from China within 30 days; warns freeze on funding
New EPF rules rolled out: 5 things to know

Latest Posts

SBI gives New Year gift to home, car buyers! Cuts external benchmark rate on loans by 25 bps

State Bank of India (SBI) on Monday announced a reduction in its external benchmark based rate (EBR) by 25 basis points to 7.80 per cent from 8.05 per cent. The new rates will be applicable from January 1, 2020.

"With this reduction, interest rate for existing home loan customers as well as MSME (micro, small and medium enterprises) borrowers who have availed loans linked to external benchmark based rate would come down by 25 bps," the country's largest lender said in a release.

SBI also said that new home buyers would now be able to get loans at an interest rate of 7.90 per cent per annum as compared to the earlier 8.15 per cent.

Banks are required to alter the external benchmark based rate at least once in three months depending on underlying external rate like repo rate.

SBI's external benchmark lending rate is linked to RBI's repo rate which is currently at 5.15 per cent. The rate is fixed at repo rate plus 265 basis points. In October the RBI had cut its repo rate by 25 bais points to the current 5.15 per cent.

Earlier this month, the State Bank of India had announced a cut in marginal cost of funds-based lending rate (MCLR) by 10 bps for its 1 year MCLR. The revised rates came into effect from December 10. That was the eighth consecutive cut in MCLR this fiscal.

SBI is the largest commercial bank in India. It also has a market share of 25 per cent each in home loans and auto loans, it stated.

Commercial real estate to continue its boom in 2020; residential sales may see growth only in H2

The year 2019 was a mixed one for the real estate industry. And it is likely to be the same in 2020, or for most months during the year. While developers continue to sound optimistic, not all is well -- particularly in the residential market.  

First, the bright spots. Commercial, or office real estate boomed in 2019 and is likely to further bloom in 2020. The supply is steadily increasing, so has the absorption rates. Vacancies are down for the top grade buildings while rents in many markets have risen. Unlike the residential side, the office market is characterised by transparency, and in most cases, on-time delivery. Rents could inch up because there is limited ready-to-move-in supply in major markets. Companies looking for larger spaces, of say half a million sq ft, are pre-committing to developers that are starting work now.

Commercial, as also the logistics real estate, would also be buoyed by the depth of India's economy over the mid-term. In 2019, India became a $2.7 trillion economy and now wishes to touch $5 trillion by 2024-25. Logistics real estate is likely to see heavy investments in tech-enabled warehouses -- concrete or low quality steel godowns are now being replaced by steel structures, which are pre-engineered in factories and then assembled at the location. The way India stores is changing, particularly, after GST was enforced in 2017. Fast moving consumer goods companies, consumer durable and other manufacturing firms are consolidating smaller warehouses across multiple states, set up to be tax efficient, into a few strategic but large ones considering India is now a single tax country. From managing single company warehouses, logistics companies are shifting to multi-client, multi-product models.

So, what about residential real estate? The second half of 2019 didn't have encouraging news to forecast a stronger first half of 2020. ANAROCK Property Consultants cited "unrelenting liquidity crisis, lower-than-expected buyer sentiments and faltering GDP growth" as reasons for poor housing growth. Of the 2.61 lakh housing sales in 2019 across the top seven cities, over 56 per cent were sold in the first half itself. Residential sales in the second half of 2019 plummeted 22 per cent against the first half of the year. ANAROCK added that on the supply front, of the 2.37 lakh units launched in 2019, the second half had new addition of 97,000 units as against 1.4 lakh units in the first half.

"Residential growth in 2020 will mainly depend on the swift on-ground implementation of some of the previously-announced sops including stressed funds (of Rs 25,000 crore). If not, it may negatively impact the sector with buyer sentiments derailing even further. And if done timely, these measures will yield positive impact on the Indian real estate in 2020. A major part of the residential growth will most likely unfold in the second half of 2020. And, the financially stronger players will stay ahead in the game," Anuj Puri, Chairman, ANAROCK Property Consultants, noted.  

One segment of the residential market that could witness and sustain some momentum is affordable housing. In 2019, overall new supply in the segment rose 22 per cent -- from 77,590 units in 2018 to nearly 94,530 units in 2019.

Yet another trend to watch in 2020 would be rental housing. Parveen Jain, CMD of Tulip Infratech & Vice Chairman of industry body NAREDCO says that metropolitan places like NCR are becoming a popular destination for renting as it comprises global cities like Delhi and Gurgaon and their expanding subsidiary towns. "As masses from far-off places and other states converge here in search of jobs at all levels and for amenities available here, the demand for housing, and in turn, for staying on rent is ever increasing in the NCR area," he noted.

India will emerge stronger from economic slowdown, says PM Modi

Indian will emerge stronger from an economic slowdown, Prime Minister Narendra Modi said in a speech on Friday, reassuring investors about their long-term bets on Asia's third-biggest economy.

India, once the poster child of economic growth in the developing world, grew at the slowest pace in six years during the July-September quarter.

"India has witnessed such ups and downs previously as well," Modi said in a Hindi speech to businesses leaders in capital New Delhi. "And each time, we have emerged even stronger. That's why even now India will forge its path ahead with firmer determination and confidence."

The federal government will spend 100 trillion rupees ($1.4 trillion) in the coming years to develop the country's infrastructure further, Modi said.

BJP offers platform parallel to Finance Ministry for pre-budget consultations

Bharatiya Janata Party (BJP) has initiated a stakeholders' dialogue as part of pre-budget consultations. This comes alongside Finance Minister Nirmala Sitharaman's official stakeholder interactions.

"Annual Budget making is an important exercise which impacts economic roadmap ahead. Any feedback and suggestion that helps the Party and the Government to increase its connect with the ground realities are welcome. As a ruling political party, it is always our endeavor to interact with stakeholders on important policy decisions of the government," Gopal Krishna Agarwal, national spokesperson for economic issues, BJP, said.

The stakeholders' dialogue with BJP, which started on Thursday, will go on till 14th January 2020. The 11 sectoral dialogues will cover areas like GST, agriculture, MSME, real estate, pharma, heavy industries, telecommunication and IT, financial sector, and macro economy in general.

While the GST session will cover IBC and Company Law implementation, agriculture will include supply chain, input cost and crop insurance, food processing, procurement, trading, exports and trade relations etc. Under MSME, issues related with credit, working capital, compliance, GEM, TReads and startup ecosystem will be discussed.

According to Agarwal, the topic real estate and construction will look at issues related to RERA, home buyers and employment generation. Automobile industry will be in focus along with intellectual property rights and industry standards related issues of the pharmaceutical industry. Heavy industries sessions will cover land, labour and contract enforcement. Telecommunication and Information Technology will include IT enabled services, ecommerce, data privacy and competition scenario. The discussion on financial sector will touch upon financial resolution, cooperatives banks and NBFCs. Finally, the Micro and Macro economy session will discuss GDP growth, capital information, investment, sentiments and consumer demand.

Invited sectoral experts and office bearers of associations will be part of the dialogue.

While the consultations are being held with Agarwal and other general secretaries, the reports from these consultations, after deliberation with BJP President J.P. Nadda and general secretary B.L. Santosh will be forwarded to the central government.

Companies Act provisions to be decriminalised soon: PM Modi

Hardselling his administration's pro-business approach, Prime Minister Narendra Modi on Friday said the government is working to decriminalise provision of Companies Act to make it easier to do business in the country.

Speaking at an Assocham event, he said the recent cut in corporate tax has brought rates to all-time low for businesses.

He, however, said labour force should also be taken care of.

Modi said time taken to register companies has been cut to few hours from months and better infrastructure has enabled the cut in turnaround time at airports and ports.

Dynamic changes have been made in the Goods and Services Tax (GST) on suggestion of trade and industry, he said adding India is among the top 10 nations which have in last three years made the maximum improvement in ease of doing business ranking.

From 142 rank, India has climbed to 63rd position in three years, he said.

Modi said many provision of the Companies Act have been decriminalised and work is on to bring in more provisions.


Alert Message

Please Wait...

Share the Opinion Poll with your Friends At


Share the Survey with your
Friends At