Published date | 09 September, 2019

Experts hail mergers as positive for Indian economy; higher lending capacity my relieve real estate from liquidity crunch

Industry Experts are upbeat about the recent public-sector Bank Mergers as a milestone decision for Indian Economy. For realty sector, they believe the lending capacity of banks will increase, which will help the sector fight with an ongoing liquidity crunch.

The Indian real estate sector has been grappling with a liquidity crunch for quite some time now with credit drying up in the NBFC sector and mainstream banking at large. However, the milestone decision of the Central Government pertaining to bank mergers has been welcomed by several industry experts who believe that this may lead to higher lending capacities for a few larger banks, thereby relieving Indian real estate from the liquidity squeeze in the near future. 

Kanika Gupta Shori, the Founder & COO at Square Yards, has stated that there should be a significant impact on economic revival courtesy these mergers. She has stated that real estate already accounts for a massive part of the Indian economy and hence the sector will benefit from this move in several ways. This will include the easier availability of credit for suitable real estate projects according to her. In Kanika Gupta Shori’s opinion, a suitably funded, robust and more efficient nationalist banking sector was required and this is a highly positive decision taken by the Government which also comes at the right time. 

Kanika Gupta Shori MailToday Square Yards

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Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.