India needs more asset reconstruction companies that will lead to increased focus on real estate financing , Deepak Parekh, a financial services veteran and Chairman of HDFC Ltd, said on October 29.
While speaking at a conference organised by the Confederation of Real Estate Developers' Associations of India (CREDAI) in Mumbai, Parekh said financial regulators are not willing to look at real estate financing.
"We have tried a number of times that real estate is different from industry lending and the land is a big security. We can’t go against them, 90 days due is sacrosanct," he said.
In most cases, lenders have land as security but financiers have no choice to respect the view of the regulator, adequate provisions have to be made but incremental funding can’t be done, Parekh added.