We all know that Satyam cooked books. They had over 47,000 employees in various locations, primarily in Hyderabad. There is news that maybe 10,000 would be let go. The question is where will they find the "high" paying jobs. Everyone knows that service companies don't pay as much as MNC's and Satyam is one of the worst paymasters in this lot. I know several satyam folks who quit in US well before the scam since they were underpaid and overworked to the point of no return. Hyderabad has seen a boom which will rival no other city since AP folks are heavily invested in lands, plots and apartments. The common acres to plots conversion technique is heavily ingrained in the local population and I was surprised to see many IT people buying acres on outskirts of Hyderabad just on speculation of the new airport in Shamsabad. Now with the airport hype dying down, and the disappearing act of a regular paycheck, where does it leave Hyderabad. Maytas is another story and I know several people who have booked and now stuck with no exit. These folks are bleeding pre-EMI interest and will do so for years. It goes to show the due-diligence done by banks on properties in nil.
Here is a DNA article on Satyam layoffs.
Layoffs at Satyam set to begin with BPO unit
Hyderabad: Tech Mahindra, after gaining control over the troubled IT major Satyam Computer Services, seems to be getting straight to business.
The company intends to downsize operations beginning with the business process outsourcing arm Satyam BPO (formerly called Nipuna).
Sources in the company saidthe layoffs will begin with the support department. "The billable staff is not going to be disturbed now. It is the support staff that is likely to exit," the source said.
Satyam BPO has over 3,000 associates and the ratio of billable staff and the support staff is about 35:1. "The target is to make it 80:1. This means a major shake-up in the BPO arm," the source said.
About 60% of the support staff face the axe.
Tech Mahindra has decided to use Satyam's existing marketing, HR and other support functionaries for the BPO too instead of having a separate set-up.
Sources among employees said that there are about 80 people in the HR department alone and about 60 of them are likely to go.
"Particularly the support functions in both Satyam BPO and Satyam are obscenely overstaffed. Any effort to resurrect Satyam would happen only by rationalising these functions," the source said.
30 comments:
The next phase of crisis : commercial real estate loans Data from research company Foresight Analytics LLC show that while the smaller banks make up 28 percent of the industry's total assets, they are responsible for about 60 percent of the nation's commercial real estate lending and roughly a third of the general business lending that local economies thrive on.
That makes them especially vulnerable to what many believe will be the next phase of the real estate crisis -- a sharp downturn in commercial real estate values. Deepening unemployment and business strife have begun to push up commercial delinquency rates, said Foresight partner Matthew Anderson. And that is putting pressure on banks with heavy concentrations of commercial loans.
The result has been a spike in the number of bank failures. Foresight reports that 56 banks have collapsed since 2007, and the firm expects the number to jump to 150 by the end of this year. The Federal Deposit Insurance Corp.'s list of "problem banks" swelled past 250 in the fourth quarter, and the number of failures and "assistance transactions" in 2008 was at a 15-year high.
Beware Crisis' Next Wave : Commercial Real Esate, Options ARMs & Credit Card Debt ~ Commercial Real Estate: This is already on Wall Street's radar screen but future losses could account for a big chunk of the government's stress test estimate of $599 billion of future bank losses.
~ Option ARMs: These "pick-a-payment" mortgages will lead to "waves of foreclosures" starting next year in the "hundreds of billions of dollars," .
~ Credit Card Debt: With unemployment rising and home equity loans unavailable to most, it will take down major lenders"
On BusinessWeek,
Tata's Nano Home: The company behind world's cheapest car will sell $7,800 apartments.
There is a double whammy to the Indian IT Meltdown with ref to its effects on the INDIAN economy.
1) Is the large scale redundancies and subsequent freeze on employment.
2) Is the contraction of wages where contracts are being renegotiated by employers. This aspect is happening in almost all the sectors of the Indian economy.
I have been looking at r2i for the last 1 yr now and plans are still in place to do it this year. Spoke to Vibgyor school in the city we intend to relocate, their fees quoted have come down from the brochure price demanded lasrt year.
Its sad that young people are losing their jobs.
ll I would like to tell them is not to worry. This too shall pass. Use this as an opportunity to hone up your skills.
Cut down your unnecessary expenses. The money saved from eating out or watching a movie can be used to fund your studies.
Its tough to degrade your lifestyle, but trust me there is no shame in travelling in a bus rather than a car.
Shun all that peer and social pressures. You will come out of it shining brighter than others.
The Clock is Ticking on the U.S. Dollar and Bond Markets! Good one for those who are talking of early economic recovery.
Excellent Read but a long one.
Jayaram
I have seen some comments here about Mungerilal's and some other derogatory comments including this article about Satyamites. I think what happened to Satyamites was grossly unfair. I know some of them...hard working and bright people, people who had pride in their company being the 4th largest. Most of them face bleak futures because of the greed/poor judgement of one man. In Mumbai itself a lot of couples(working for Satyam) have had to look at options of selling their cars or houses due to uncertainty and pay cuts etc.
I think all these people and the so-called "mungerilal's" of the world need sympathy and our prayers. Sometime back Observer(whose comments I miss) had talked about how despite being an IIT graduate he's been laid off. Everyone's a mungerilal in some way or the other...if we were not we would not be human(maybe Vulcan's in Star Trek).
I think the worst has yet to come and I sincerely wish everyone all the best. Hope you all will be able to safely ride out this storm. This includes you BB..hope your investments do not loose more than 50-70% ;)
Alt-A Loan Resets Continuing Through 2011More info on US real estate. Good luck for those who see quick economic recovery.
shows the huge amount of Option adjustable and Alt-A mortgage resets which are coming due in 2009-2011. Many of these mortgages are even shakier than the sub-prime mortgages. This combined with 9-10% unemployment and the significant declines in housing values will result in a much bigger negative effect than the sub-prime mortgage problems of 2008.
Fitch Ratings on Tuesday released a wide-ranging look at option ARMs that paints a decidedly negative picture for the mortgage markets over the next 36 months. In fact, the picture is a downright scary one: the bottom line is that most outstanding neg-am mortgages won’t get out of 2011 alive, thanks to forced recasts.
Fitch analysts said they now expect roughly $29 billion in option ARMs to recast to higher monthly payments by the end of 2009, and an additional $67 billion to recast in 2010; of this, approximately $53 billion is attributed to early recasts.
Jayaram
@Bharat
I agree with you that the techies going through the hardship need sympathy but they are to blame themselves for their current plight. They were enamored by the fat salaries, false assumption of being at onsite for a long time. In their blind pursuit of goals they just forgot about how they were responsible for making common people's life miserable. A person earning a decent salary could not afford to live on rent in cities like Bangalore/Pune.
Some of the techies turned into speculators and flooded company's bulletin board with attractive schemes from real estate friends. There was no such thing as “Moral Hazard” for them. The experienced guys turned the IT profession into the secondary profession and devoted most of the time trading shares online. Anyway now they are being sent on pilgrimage/or back to offshore.
I hope that the realization must have dawned upon them by this time and they are not euphoric by the so-called "Green Shoots" in the sight.
So our sympathies are with who unwittingly got sucked in supper housing bubble and not with the speculators, also the one who cheated their own colleagues.
Anonymous@ 8:24
Very true! These are the guys who made Bangalore very expensive and congested city from the once peaceful, cost-effective, calm and cultured city that it once was.Those of you who had visited Bangalore before the IT boom, please compare then and now. It has been turned into a giant glass windowed mall from the charming city it once was. The auto drivers have become rude, the earlier genteel behaviour of the locals (many of them) has turned for the worse. Money, arrogance and all the other vices that come with quick and easy money. I wonder how the non-IT people like govt employees in Bangalore cope.
Dear Anonymous@08:24 and Coolhead,
I agree completely with what you are saying. Such people are called nouveau riche..people who have just made some money..and due to them and their influence, society at large suffers quite a bit.
But on the other hand, look at it from a more holistic perspective - IT has had a rapid growth in India and so has attracted a lot of folks ..if you want to segment these folks maybe you will find some %age of people as brash and boorish in temperament. But pls. realize that IT did not make these people the way they are..they were already like that. On the other hand are all IT folks like this..definitely not. Most people I know in IT work hard, read/learn a lot and save everything like ants/squirrels...most IT professionals are middle class folks who though they might have made a lot of money do not let it go to their heads. I hate sounding like an apologist for IT professionals :) But it had to be said.
I am still sorry for Bangalore/Pune, both marvelous and sleepy hamlets..wonderful places, but on the other hand people have gained prosperity and everything does have a yin and yang to it..
Which is what will happen to all those builders...they have had an absolutely fantastic 4-5 years...super bubble mode...well one can see that the Yin phase is close at hand..already one can clearly see the seed of Yin..
Do you want to live in south Mumbai paying Rs 40,000/ p. sq.ft built up area
Go to namiman point and you can see beautiful scenarios shown in the following link
http://picasaweb.google.com/lh/photo/dzRER_neNFde4N4Q65g-Qg
I guess, the person in picture is a MLA as the MLA Hostel is closeby
The pink media of India is not giving the complete picture of US Bank Stree Tests.
Here is more information about the phony bank stress tests.
At this very moment, more than 200 federal regulators are examining our 19 largest banks — supposedly, if you believe Washington, to determine which are strong and which are at risk for failure.
Q.1 They’re reportedly asking, “Will this bank survive if the U.S. economy shrinks 2% in 2009?”
But in the first quarter, the U.S. economy contracted two and one-half times more than that — at an annual rate of 5%!Q.2 They’re asking “Will this bank fail if unemployment rises to 8.4% in 2009?”
But unemployment is already higher than that — at 8.5% and more than 600,000 more jobs are being lost each and every week!Q.3 Even the regulators’ “worst case scenario” of a 3.3% economic contraction and 8.9% unemployment is a joke:
Not only is the economy already shrinking much faster than 3.3% … the Obama administration itself has warned that unemployment will be much higher than 8.9% this year!
any hyderabadis in this forum?
there is no dearth of land in Hyderabad and near hitec city, but a 1000 sft flat costs no less than 35 lakhs, why why why do I have to cough up that much amount, many of NRI from AP have invested heavily in hyderabad real estate see site R2ICLUBFORUMS.COM hyderabad real estate section
Rushabh
Dear Rushabh
good news to Hydrabadis...
that is soon Hydarabad will be the capital of new "Telangana State". All Coastal Andra and rayasima People will be kicked back to their own places ( apparently they are the inverters in Hyd)by People of Telangana. Soon Hydrabad will be Patna ( capital of Bihar)
hi Guru,
iam not in favour of seperate telangana(iam a native of nizamabad) it has no future iam afraid it will be an other Chatisgarh in the making. Andhra guys or anybody investing is not an issue but expecting unscruplous profits over investment is not good.
there is lot of land for devlopment in gachibowli, kondapur, but it is horded.
iam not expecting to buy a flat in pennies, ready to pay 25 lakhs for a min 1000 sft flat(with min 900sft carpet area) builders tell crapt like super built up area, built up area and all that selling flats above 30L.
Rushabh
Builders sell non-core land holdings
Developers Resort To Distress Sales As Funds Get Scarce; Settle For Up To 30% Less
Sachin Dave & Supriya Verma Mishra MUMBAI
IN A bid to raise money for their ongoing projects and survive the downturn, many builders are planning to sell off their non-core land holdings. In a booming property market, several builders had built land banks. Often, land was purchased even in markets where they had a comparatively low presence. With the market situation having changed, and other routes of raising funds — bank loans, private equity and going public — proving to be difficult, builders have resorted to selling their land, even at a discount.
Anuj Puri, managing country head of real estate consultancy Jones Lang LaSalle Meghraj (JLLM), said: “Yes, the present market situation has forced many developers to sell their non-core land where they had invested earlier. Builders are just focusing on their core projects for the moment and looking to complete them.” Ostensibly, the builders are not getting the price they had paid earlier. In some cases, say industry sources, builders are willing to settle for a drop in 30% over what they paid.
Interestingly, many New Delhi-based developers, who purchased land in Mumbai, are said to be looking at ways to monetise their land in Mumbai. According to property market sources, DLF has also put its NTC Mill property in central Mumbai on the block, though the DLF spokesperson denied it.
The issue gets a little complicated since closing deals at lower prices has been anything but easy. “There have been many such deals in the market, but the asking rate by the seller seems to be higher. This could come down further as many foreign funds, which financed many projects earlier, are not willing to invest any further,” said SN Chopra, chairman, Hill Estate, a Mumbai-based property consultant.
Within the broker fraternity, the news about large developers selling their land continues unabated. It is learnt that K Raheja Universal is selling its Hindustan Composite property in Vikhroli in central Mumbai, which it had bought only last year for a whopping Rs 650 crore. It is also understood that they have sold parts of their land at Khar in western Mumbai and at the Wallace Mills in south Mumbai. This could not be confirmed from the developer as an e-mail sent by ET remained unanswered.
Likewise, Kalpataru was believed to be looking to sell some of its land in north Mumbai, though this was denied by the company’s executive director, Parag Munot.
Builders, who had invested heavily at the peak of the market boom, are not only faced with a repayment issue, but are forced to rethink the viability of the project. In some cases, banks have had to sell land that has been mortgaged to recover the amount lent to the builders. “A public sector bank has such land from many builders, and they are now putting it up for sale, especially in New Delhi and Mumbai,” said a city-based developer.
Jay
This is about the comment posted by Anonymous on Stress Tests in US.
Anoymous quoted Martin Weiss about the "phony" stress tests..
I have not come across any major news institution even smelling the cooking of US Books by US Govt as claimed by Mr Martin. So I was intrigued.
Just for my records - I checked one figure quoted by Martin and reproduced by Anonymous that US is loosing jobs at the rate of 600,000 EVERY WEEK. Sorry - that was WRONG. US economy has been shedding around 550,000 to 600,000 a MONTH for the past few months. A large number - still it is 25% of what Martin quoted. And the job losses have slowed this month.
Then I realized one important fact. Mr Martin has a big Axe to grind. He wants to sell his book on how to survive the "ultimate Great Depression". It helps him if we are scared. He does that by scaring the s**t of everyone by wrong statistics if needed.
I have been watching the so called "experts" cashing on every wave - Dot com, housing, Stock market boom - you will find hundreds of "experts" writing books and telecasting late night informacials on how to become rich through stocks, real estate investing.. what ever...
I think Martin belongs to this type of "expert" capitalizing on fear cycle.
The experts of the previous booms are nowhere to be seen now. So would I expect Martin to disappear without a trace when sanity returns..
waiting for Bindaas Bhai
Where are you..
why ??
Property market struggles as funds stay away
You are all ignorant imbeciles!
The real estate prices are going to sky rockets very soon.
1000% profit minimum garunteed.
I just received news that Martians and extra terrestrial life forms are going to invest in India's real estate in a big way.
Time fast time fast time fast (or was it Dont time?).
Again u fools, I am the only intelligent person around here. My track record shows that I have been 100% right ALWAYS.
DUMBASS BHAI
A good article on housing bubble and why the Banks/Housing Finance Companies are not reducing the interest rates
Lenders Will Bear The Brunt - No Cash but Land ~ In retrospect, it is clear that valuations on the basis of land banks instead of likely cash flows created a bubble in the equity markets. Once demand dried up, equity values fell, and at their lowest point, most real estate companies were valued at about 10 per cent of their peak prices.
~ Customer advances have been taken — in some cases equal to 85-90 per cent of the total amount payable, but the money was not necessarily retained/utilised for construction purposes.
~ A lot of investors are paying the price for believing that prices would go up indefinitely at abnormal rates. Individual investors are stuck with investments made with borrowed money in the expectation of a quick buck — and none of their investments can be quickly liquidated in the current scenario.
Why banks are not lowering home loan interest rates or duping the gullible buyers with teaser rates? Which banks have the highest exposures?HDFC and HDFC Bank have a reasonably high exposure — to all of them. The highest private equity exposure is DE Shaw — one of the world’s largest hedge funds — with an exposure of about $800 million. Morgan Stanley Real Estate Fund is another, which has put in around $800 million into Alfa G, Oberoi Constructions, Mantri Developers among others.
About $1.2 billion was put into DLF Assets ($400 million from DE Shaw and $800 million from Symphony Capital).
People have taken very, very large bets, and really crazy bets. And if you ask these companies how much cash they have today, the answer is zero.
There is no alternative. If they (the developers) don’t pay and you (the banks) don’t restructure, all you can do is take over their assets. What will banks do with land or apartments? They can hardly manage the assets on their own.
Historically, it has been the lenders who have borne the brunt of it.
and the lenders will suck out every hard earned penny from the borrower
Layoffs at Capgemini continue
12 May 2009, 2345 hrs IST, ET Now
Print EMail Discuss Share Save Comment Text:
CHENNAI: Consulting and outsourcing firm Capgemini has laid off nearly 100 employees at its Chennai centre. The pink slips were issued for
employees mostly in the middle management positions. This comes on the back of reports that said Capgemini sacked 600 employees in Hyderabad and Pune.
The company has nearly 20,000 people working in India. An employee said the layoff across centers was because of the overall economic slowdown, which was impacting the company’s project flow and clients.
“While some clients have ramped down on the size of contracts, other projects, like the Lehman Brothers account closed after the company’s collapse. Apart from the middle management, some employees on probation were also asked to leave,” said the employee at one of the company’s locations, who did not wish to be named.
When contacted, Capgemini India’s chief people officer Cyprian D’Souza told ET through e-mail, “India is central to our global delivery model and we are in the process of mapping our existing skills with the business in hand and the business outlook. The economic condition is tough and no company is immune to its effects.”
Mr D’Souza added that the industry was seeing an overhaul within all the affected verticals. “The process though tough, has to be undertaken to align our business with global economic realities, optimise operational efficiency, ensure financial health and enable future growth.”
For the first quarter of 2009, Capgemini group posted consolidated revenues of Euro 2,205 million, up 0.9 % compared with the year-ago period.
Jayaram
BB
where are you? This forum is suddenly becoming boring? Are you on holidays?
Anonymous @ 2:37 PM
this scenario looks very much in favour of builders they will not reduced rates knowing very banks can't force them to return the money and it doesn't matter if end users delay/dont buy flats
Rushabh
Spurt in real estate demand, prices rise
Namrata Acharya / Kolkata May 12, 2009, 0:05 IST
http://www.business-standard.com/india/news/spurt-in-real-estate-demand-prices-rise/357782/
With sales gradually picking up in the real estate sector, developers are swiftly increasing prices.
Tata Housing has emerged as the lead developer to have hiked property prices in the recent days.
The company has increased prices of residential units at Eden Court, its first housing project in West Bengal, for the second time in the last one week, to Rs 2,900per square feet from the staring price of Rs 2,750 per square feet.
"The rise in prices is in tandem with the demand, as almost 70 per cent of the residential units in the project have been sold out," said sources at the authorised marketing agents for Tata Housing.
Tata Housing's first real estate project in the state is not a low-cost housing project, like the one it recently launched in Mumbai.
Widely applauded as a "Nano" in the housing sector,a 283 square feet flat in "Shubh Griha", the company's low cost housing projects in Mumbai, comes at about Rs 3.9 lakh.
Whereas, at Eden Court, about a 1,000 square feet flat will not come at less than Rs 30 lakh. A spokesperson from Tata Housing, while confirming the price hike, said, "The housing project in West Bengal has been well-received."
When asked whether the company would launch a low-cost housing project in West Bengal, the spokesperson said, "Our managing director has indicated that we will have a pan-India presence. We are also considering Kolkata for the housing project. The project commencement will depend upon the availability of land in the state."
Spread over 50 acres in Rajarhat, in Action Area II of New Town, the Tata Housing project would be a combination of residential, commercial and retail, and the first phase comprises the residential project.
The company bought the land from the West Bengal Infrastructure Development Corporation (Hidco), the nodal agency for allotting land in New Town Rajarhat.
The complex would be spread over five acres and would have three towers with two-bedroom and three-bedroom apartments. Two of the towers would have G+18 floors. The entire township project is expected to be completed in 2.5 years.
However, not just Tata Housing, it appears that the real estate sector was showing signs of recovery.Kolkata-based P S Group, is also developing a housing project at Rajarhat, and selling flats at Rs 1,899 per square feet.
Pradeep Chopra of the P S Group said, his firm had increased prices by Rs 200 per square feet recently. "Even by selling at Rs 1,899 per square feet, our margin is close to Rs 300," said Chopra.
According to experts, the spurt in prices could be in view of the lack of supply, mainly because for more than last six months hardly any new project has been launched by developers in Rajarhat.
With few ready-to-occupy flats available in the area, big real estate developers might have been leveraging from the imbalance in supply and demand, apart from the brandname, opined experts.
Atul
ICICI Prudential to increase headcount by 3,000 in 2 months
http://www.livemint.com/2009/05/13130640/ICICI-Prudential-to-increase-h.html?h=B
New Delhi: Private sector life insurer, ICICI Prudential Life, has said that it will hire 3,000 people in the next two months, debunking reports of any reduction in workforce.
“We are a growing organisation, and we have already started hiring the next round of 3,000 people over the next two months, the process for which is in full swing,” insurance company’s senior vice president and head-marketing Sujit Ganguli said.
The employee strength the insurer stood at 25,000 at the end of March 2009.
“The insurance company, which has a network of over 2,000 branches, has already rationalised its branch network for optimal utilisation of resources,” he added.
“We have combined some of our branches. We have not vacated from any location where we were present and have ensured to remain in close proximity to all our customers,” he said.
“The company added 40 branches to its network in the second half of 2008-09 notwithstanding branch rationalisation exercise,” he said, adding that the number of branches have gone up to 2,009 as on 31 March, 2009.
Net of opening new branches and rationalising, the number of branches has actually increased from 2,055 in 30 September, 2008 to 2,099 as on 31 March, 2009, he said.
In depth analysis of Super Housing Bubble in India.
The-Rise-Fall-Of-Realty.Few of the key points
Source of cheap moneyNew FDI norms for realty projects in March 2005 brought in an estimated $10 billion, mostly in partnership with Indian developers. Simultaneously, closely held companies took the IPO route to raise funds. In 2007, real estate companies together raised Rs 14,591 crore, 43 per cent of all IPO money raised. There was not enough stock, nor sufficient projects to absorb this money, causing a price spiral.
False claims by builders. How they are creating artificial scarcity when the market is glutted with empty homes. Desperate builders are on an overdrive to generate some cash flow by offering huge discounts to bait buyers. Two months ago, Mumbai-based Lodha Developers launched Casa Univus, a township of 3,000 apartments, near Mumbai’s Thane suburb. Situated 14 km from the city in the middle of nowhere, the apartments came at an attractive Rs 3,000 per sq. ft, nearly 50 per cent lower than in Thane. The Lodhas claimed it was a great launch with 500 bookings in the first few weeks. That was till another builder, Everest Developers, came along and launched another project 8 km from Thane’s city centre at Rs 2,200 per sq. ft. Everest, too, claimed it had 500 bookings. But enquiries with HDFC revealed that there were hardly any applicants for home loans for these projects. Abhisheck Lodha, director of the Lodha Group, concedes: “Yes, there have been cancellations.”
Similarly, Delhi-based Unitech has launched several new projects including Uniworld Gardens II in Gurgaon Sector 47 and Ananda at North Town, Chennai, at attractive prices. Its old projects, though, are yet to be completed. It even faced street protests from 350 flat owners of its World Spa project in Gurgaon, who have paid 95 per cent of the cost but are yet to get delivery, despite a three-year delay.
A research analyst with a foreign institutional investor who recently toured several DLF and Unitech sites in Gurgaon, says she saw cows grazing at many project locations that were supposed to be underway.
Commercial real-estate in doldrums “The commercial/office space segment is in greatest distress with 195 million sq. ft of ready and under-construction property in the market with few takers,” says Kapoor.
How the gullible buyer was looted in broad day-light? Just check the following for the marginsAs the property market plummets further, profit margins are being increasingly squeezed. DLF’s FY08 margins of 53.5 per cent slid to 42, 39 and 34 per cent for the first three quarters, respectively, of FY09.
The beggars are in big time trouble. Delhi-based Parsvnath Developers is a good example of the host of over-leveraged realty companies that could turn turtle. Raising about Rs 1,000 crore from its IPO, Parsvnath locked up most of this by successfully bidding for a 123-acre housing plot at Chandigarh for Rs 821 crore in June 2006. The project has stalled and Rs 517 crore has been frozen by Parsvnath’s JV partner, the Chandigarh Housing Board. Then, in 2007, it bid for a seven-acre BEST bus depot land in Mumbai’s Kurla suburb, and announced a Rs 620-crore commercial and housing project. The project is yet to see the light of day. Today, it has virtually shut shop in Mumbai and employees have not been paid for over eight months.
Delhi-based Omaxe has over Rs 1,500 crore debt on its books. It has rolled over Rs 600 crore for a year that was due in September this year, but with sales of just Rs 735 crore for the first nine months of the current fiscal, can it meet its loan commitments? With housing and commercial property not selling, Omaxe promoter Rohtas Goel has announced a business plan to develop airstrips and jails in Uttar Pradesh!
How politicians are helping their Real-Estate friends through RBI by twisting the arms of Banks ? Many developers face a debt trap, having borrowed heavily to acquire prime land and speed up development during the 2005-2007 boom. By mid-2008, most of these realtors had drummed up high debt-equity ratios of 0.8-2.0. This would have been manageable had these companies maintained a sustained cash flow. However, with negligible sales, they are in for big trouble. Many of them would have been in serious default had it not been for the Reserve Bank of India directing banks and financial institutions to help them restructure their loans. These loans have to be ultimately paid after the rollover period; and given the current market scenario, cash flows could be worse a year later.
Thanks for sharing the information it helps a lot. If your searching for Residential plots for sale in Loyapally, Hyderabad. JJ Infra is the No.1 Real estate company for Investments.
Post a Comment