Reddy warns of asset bubble

RBI has warned against creating any bubble in the housing loan segment. 8216;8216;We do not want any asset bubble as experienced by many western countries. We have taken some steps to regulate home loans more effectively,8217;8217; said RBI Governor Y.V. Reddy. 8216;8216;In the last two years the real estate loans have taken a big jump and the NPAs, if any, will reflect in the years to come. At the same time we do not want any shift from the government8217;s policy which emphasises on housing for all. Hence we have accorded priority sector lending status for home loans up to Rs 15 lakh,8217;8217; the governor said. Many banks are not comfortable with the boom in the sector.