Private sector lender Lakshmi Vilas Bank has decided to float a subsidiary company for undertaking housing finance business. The bank will seek shareholders’ approval for issue of equity shares up to 40 per cent of the present issued capital.

The bank is looking at a qualified institutional placement, a global depository receipts or an American depository receipt issue, or a follow-on public offer. Lakshmi Vilas Bank Managing Director & CEO K S R Anjaneyulu said, “The housing finance space offers immense scope.

We need focused and concerted efforts in this business so as to reap the benefits from this huge potential market. That is why the bank’s board has decided to float a new subsidiary to undertake the housing finance business.”...

State Bank of India SBI on Wednesday extended its eight per cent concessional home loan scheme for another three months till September, which is 0.5 per cent higher than its minimum lending or base rate. SBI fixed its base rate, the minimum lending rate, at 7.5 per cent which would replace its benchmark prime lending rate from tomorrow.

The bank has decided to extend its popular home loan and car loan schemes and leave their terms unchanged, following the transition to base rate system from July 1, SBI said in a statement. The rates will be valid till September 30, unless the base rate is revised in the meantime, it said.

The floating rate component henceforth will, however, be linked to base rate, it said. The popular home loan and car loan schemes by SBI were due to expire on Wednesday. For the first year, home loan would carry eight per cent interest rate and for the second and third years it would attract nine per cent rate....

In many cases, it may make sense to renegotiate as well. Floating rate home loan borrowers, stuck on higher interest rates, can expect some relief from tomorrow. The introduction of base rate will ensure that if they are linked to it, they will see automatic rise and fall in their existing rates.

And here’s more good news: The Reserve Bank of India has asked banks not to charge any fee for shifting from prime lending rate to base rate.

Importantly, even though banks are going to charge a fee - in excess of 1.5 per cent in most cases - for renegotiating the loan, it could still make sense in doing so. Once you have shifted to the latest rate, this along with the linkage with base rate will ensure that future costs are saved....

Inno, formerly known as Innovative Investments, is a real estate investment group, which has now moved up the value chain by unveiling its foray into property development. The group has launched its flagship residential township development project ­ Inno Geo City near Oragadam in Chennai. It has so far funded six projects with a total gross development value of Rs 2,600 crore involving a total development of 14 million sq ft.

Inno Group is now planning to develop Inno Geo City as a self-contained township -spread over 131 acres -with a gross development value of Rs 750 crore. The project, to be developed in phases, involves construction of over 4,000 residential units by 2014.

We have now decided to enter housing and infrastructure. Affordable housing segment shows very high potential in India, Rajamannar Rama swamy, group managing director, Inno Group, said. Inno Geo City will be a landmark that will redefine suburban living in India, he added....

RG Group, with 14 commercial projects under its belt has forayed in to the housing sector with RG Residency in Noida. The affordable housing project will be a landscaped podium residential complex in the national capital region NCR. The Rs 400 crore projects is spread over 12.75 acres.

It is expected to be completed by 2012. Rajesh Goyal, managing director, RG Group, said, after delivering 14 commercial and retail projects in the past 10 years; we have now entered into residential sector.

According to the company, the rates being quoted are on built up area basis, wherein one does not have to undergo the cumbersome calculations of built up area and super built up area ratios. The group has also assured timely possessions with penalty clause. He further added, not only will the customers benefit from buying the house at an affordable rate, but will also avail the best of facilities....