Nationalized banks return to fund Noida Extension projects

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NOIDA: The Greater Noida Authority is upbeat that the Greater Noida (West) region, formerly Noida Extension, is slowly being removed from the blacklist of banks and they have started showing interest in backing buyers who want to invest in projects in the region. After the land row in 2011, banks had stopped financing such projects due to fears of land acquisition being quashed by the courts.

Greater Noida Authority additional CEO, HK Verma, said, “There was time when banks were pulling out from backing the projects, but now they are queuing up at the Authority office to be empanelled for funding development works.” Verma added that public sector banks have decided to disburse around Rs 5,000 crore as home loans and other construction loans for Noida Extension realty projects.

Apart from nationalized and non-banking financial companies (NBFCs), even private banks have shown their interest in this markets. Development authorities say this will help generate a good cash flow for development works. “We are more interested in Noida, Greater Noida and Yamuna Expressway regions for lending right now, be it fresh loans or stuck installments of loans already sanctioned,” said MK Manchanda, a senior officer in a private bank.

Developers have now started breathing easy after this decision of the banks. “Market sentiment is associated with funding and cash flow plays a vital role in delivering projects on time. As nationalized banks have stepped in, like Canara bank is supporting Wave group, the market situation is bound to improve,” said Amit Gupta, Assocham member and MD Orris Infrastructure.

Even real estate pundits have called this development good. “Private and public sector banks are now keen to tie up with developers and this will give many choices to homebuyers to pick a financial institution that suits them best,” said SS Bhasin, MD of Bhasin group and CREDAI (NCR) member.


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