City Lights

Countrys largest lender SBIs chairman O P Bhatt said,We have got so much liquidity that it does not impact us at all in terms of there being any upward pressure on interest rates for our borrowers. In the next six-months or so,we do not expect our rates to change. Indias largest private sector lender ICICI Banks Managing Director and CEO Chanda Kochhar also said there would not be any immediate increase in lending rates,after the

Reserve Bank announced measures to squeeze money.

DB Realty to raise 325 million through IPO

Mumbai-based DB Realty Ltd has struck a deal to raise 2.7 billion rupees 58.3 million from six anchor investors in its 325 million initial public offer.

The developer will issue a total of 5.56 million shares at 468 rupees each,the lower end of the IPO price band,to a fund of Reliance Capital,ICICI Prudential Life Insurance,Janus Contrarian Fund,ING Janus Contrarian,India Capital Fund and India Equity Growth Fund.

The investors will have to bring in additional funds if the IPO is priced higher,the company said in a statement. The developer is offering up to 13.4 percent of equity to partly fund projects and to repay debt. The company had consolidated debt of 6 billion rupees.

Rise in commercial property rates

The latest RICS Indian Commercial Property Survey suggests that rental activity in India picked up at a notably faster pace in the fourth quarter which has lifted optimism among property professionals. The strengthening in tenant demand has occurred across the three major sectors office,industrial and retail although rising available space continues to keep rental expectations in check.

Sachin Sandhir,MD of RICS India said,With the improving economic conditions,the commercial property market is also getting fortified and moving closer to stabilisation. Tenant demand has been improving gradually over last two quarters and confidence towards future rental activity is also quite positive.

London-based Royal Institute of Chartered Surveyor RICS is a leading self regulatory professional body for qualifications and standards land and property issues.

35 percent land area for affordable housing

Assocham has proposed that affordable housing for middle and lower middle class is possible only if 35 per cent of land area in all new housing projects is reserved for it with interest rates not exceeding 8 per cent for a fixed period of 15 years.

In an analysis on affordable housing,the industry trade body has expressed that the present National Housing Policy recommends reservation of 15 per cent of the land area in all new housing projects,which is hardly executed and thus the housing remains a dream for middle and lower middle class. It is also of the view that affordable housing for lower middle class should be within the range,not exceeding Rs 6-7 lakh and that of middle class,the affordable housing be within the cost of Rs 15 lakh.