New Delhi: The government today said it has not directed public sector banks to cut exposure in real estate following the housing-finance bribery scam, reports PTI.
“No… Why should we say this,” financial services secretary R Gopalan told reporters when asked if the government has given such directions to the state-run banks.
The comments come in the wake of the housing finance scam unearthed by the Central Bureau of Investigation (CBI), which arrested the CEO of LIC Housing Finance, Ramachandran Nair, LIC secretary (investment) Naresh K Chopra and six other senior bankers in connection with a housing-finance racket.
The CBI has also issued notices to 21 companies to provide all the documents related to the case and explain any benefits received by them as also favours extended to the accused persons.
Going by reports, the multi-crore scam could have an adverse impact on property prices, as lenders could tighten the norms for giving loans to realty players.
New Delhi: Demand and prices of property are unlikely to decline as a result of the housing finance scam racket unearthed by Central Bureau of Investigation (CBI) earlier this week, reports PTI quoting the country's top developer DLF and consultant Jones Lang LaSalle (JLL).
“Property prices are sub-set of demand. We do not foresee any negative impact on demand. Hence, the prices will not come down,” JLL India chairman and country head Anuj Puri told PTI when asked about the likely impact of housing finance scam on property demand and prices.
Mr Puri, however, pointed out that the banks would be more cautious in lending to developers, who in turn would have to depend more on other sources like private equity for funds.
Echoing similar views, DLF Group executive director Rajeev Talwar said: “Property demand depends on the growth of the economy. Any individual misdemeanour should not impact the growth of the real estate sector.”
The views of DLF and JLL differ from HDFC chairman Deepak Parekh who, yesterday, had said that there could be correction in property prices as a fallout of the housing finance scam.
“Some developers will bring down the prices and sell...
the unsold stock with developers is huge across the country.
In this scenario, prices cannot go up definitely,” Mr Parekh had said.
On 24th November, the CBI arrested LIC Housing Finance CEO Ramachandran Nair and seven other top bankers for allegedly colluding with Mumbai-based Money Matters in sanctioning housing loans meant for individuals to corporates.
“There will be repercussions in terms of increased caution by banks while lending to developers. Borrowing will become more expensive and the process involved in getting it lengthier as banks increase their vigilance levels,” Mr Puri of JLL said.
IT consulting major Capgemini has snapped up domestic IT services firm Thesys Technologies for an undisclosed amount, an acquisition that will boost the French entity's global delivery capabilities.
Capgemini, which has a good presence in India, is a provider of consulting, technology and outsourcing services.
"The acquisition of Thesys expands Capgemini's global delivery capabilities for Temenos-enabled core banking front- to back-office solutions and product offerings...," Capgemini said in a statement.
Temenos is a widely-used banking software system developed by Geneva-based Temenos Group AG.
Without disclosing the financial details of the acquisition, Capgemini said the buyout would boost its position in the packaged core banking platform market.
Thesys Technologies offers banking implementation solutions to the global financial services industry.
According to the statement, Thesys' highly specialised service delivery infrastructure will expand the scope of Capgemini's offerings in the Middle East, Asia-Pacific and Latin America.
"Capgemini's global delivery from India is strengthened with the acquisition of Thesys, as it enables us to create value for more than 700 existing Temenos clients, as well as a large prospective client base," Capgemini India executive chairman Salil Parekh said.