DCCO of project loans for commercial real estate has been extended by a year without downgrading asset classification.
The share price of housing finance companies rose 3-7 percent intraday on February 6 after the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) permitted the extension of project loans for commercial real estate.
It has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, the RBI said.
The extension will for a year without downgrading asset classification. This would dovetail with the initiatives taken by the government to boost the real-estate sector.
PNB Housing Finance was quoting at Rs 439.40, up Rs 15.70, or 3.71 percent, and Piramal Enterprises was quoting at Rs 1,552.00, up Rs 92.10 or 6.31 percent, on the BSE.
