RBI trims UCBs' realty exposure

RBI in its circular specifies the total exposure of UCBs to real estate sector, including individual housing loans and commercial real estate, be restricted to 15 per cent of total deposit resources of a bank.

It further clarified that while the loans granted against the security of immovable property need to be classified as real estate loans, the source of repayment will determine whether the exposure is against commercial real estate.   Further, the ceiling of 15 per cent is to be reckoned on total deposits of a bank based on the audited balance sheet as on March 31 of fiscal 2009-10.