Real estate developers are getting finances from banks at 14%. From private money lenders they are getting funds at 22% and more.
HDIL is neck deep in trouble. See the share prices. DLF debt is increasing alarmingly. Even though they cry and ask banks to bail them out, nowadays banks are wary about putting good money behind bad money as they also know about economic cycles. Banks turned cautious on Kingfisher is good example.
Another six months at same interest rates is enough to break the backbone of realty companies. Even if they succeed in getting a rate cut from RBI to the tune of 50 basis points, it wont be of any help to them.
HDIL is neck deep in trouble. See the share prices. DLF debt is increasing alarmingly. Even though they cry and ask banks to bail them out, nowadays banks are wary about putting good money behind bad money as they also know about economic cycles. Banks turned cautious on Kingfisher is good example.
Another six months at same interest rates is enough to break the backbone of realty companies. Even if they succeed in getting a rate cut from RBI to the tune of 50 basis points, it wont be of any help to them.
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