Private sector lender IndusInd Bank has decided to focus on the real estate business, after a gap of almost six years. The bank has decided to focus on financing project construction and loan against property business.
“Real estate is an area that for five-six years we ignored and we felt we ignored it because we did not think we had the skill to manage the business. But there is good business embedded in the real estate business, not all business is bad. So we have now hired the skills, we have skills in-house to manage this business and we will take our first steps into real estate and financing,” said Romesh Sobti, MD and CEO of IndusInd Bank, at an analysts’ conference call.
According to reports appearing in the media, the bank in its investor presentation has laid out real estate as a key business. At the end of FY14, real estate constituted 2.41 per cent of the corporate loan book.