India's Developers Next in Firing Line From Banking Fallout
- IL&FS seizure could limit developers’ funding channels
- Under-construction projects may see up to 10% price correction
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India’s banking liquidity crunch is extending to the nation’s developers, threatening to derail a nascent recovery in the property sector.
Home builders in India have increasingly been turning to non-bank lenders for funding as traditional financiers struggle under bad loans. But following the government’s seizure of troubled shadow bank Infrastructure Leasing & Financial Services Ltd. earlier this month, that avenue may be choked off too.