PSU banks exposure in Noida realty projects at Rs 2,166cr

New Delhi: The public sector banks have sanctioned a total of Rs 2,166.2 crore as home loans and other construction loans in Noida realty projects, the government on Tuesday informed Parliament.

"RBI has reported that 'Noida Extension' does not appear as a 'banked centre' in the master office file on banks," Minister of State for Finance Namo Narain Meena said in a

written reply to the Rajya Sabha. He was replying to a query regarding the total quantum of housing loans extended/approved for home buyers by various public sector banks for housing projects in Noida Extension (a part of Greater Noida). Meena, however, said the total outstanding housing loans and other construction loans for 'Noida Centre' as on March 31, 2010, by public sector banks stood at Rs 2,166.2 crore. Of which, Rs 1,258.7 crore was sanctioned as home loans to 12,330 customers and Rs 907.5 crore as construction loans.

In two separate orders, the High Court has quashed the acquisition of about 750 hectares of land from farmers in Noida Extension, affecting more than 26,000 flat-owners and about 20 housing projects of developers, including Amrapali and Supertech.

The minister said that banks have done proper due diligence and followed regulatory guidelines while sanctioning housing and other related loans. "Indian Bank Association has reported that banks release such loans after processing and due diligence in accordance with credit policy and regulatory guidelines," the minister said.

Source: Financial Express