‘Package to revive housing sector soon’

December 11th, 2008 - 11:45 pm ICT by IANS  

New Delhi, Dec 11 (IANS) Banks are planning a major financial package, including rate cuts and other incentives, to boost the housing and small and medium enterprise (SME) sectors that have been hit hard by the global downturn, Indian Banks’ Association (IBA) said here Thursday. “We discussed among ourselves what sort of relief can be given to the housing and the SME sectors and what could be the modalities for this,” IBA chairman T.S. Narayanasami told reporters.

“We are still working on this. I think some package will be formalised by tomorrow (Friday),” Narayanasami said.

Asked about the details of the package, he said: “It can be interest rate cut or other incentives as well.”

Heads of major public sector banks Thursday met here to consider a reduction in lending rates for the housing sector and the SMEs, a few days after the government announced a stimulus package to pump prime the economy.

Unveiling the fiscal stimulus, the government Sunday said banks would soon announce a package for borrowers of home loans to promote growth in the housing sector.

Public sector banks, including State Bank of India (SBI), have already hinted rate cuts. “We are just working out to make home loan more affordable,” Narayansami added.

Besides, steps would be taken to ensure credit flow to the SME sector, he said.

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