The share price of housing finance companies rallied 5-15 percent on February 6 after the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) permitted the extension of project loans for commercial real estate.
It has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, the RBI said.
The extension will for a year without downgrading asset classification. This would dovetail with the initiatives taken by the government to boost the real-estate sector.
PNB Housing Finance ended at Rs 444.50, up Rs 20.80, or 4.91 percent and Piramal Enterprises rose 7.60 percent or up Rs 110.90 at Rs 1,570.80 on the BSE.
Indiabulls Housing Finance closed at Rs 319, up Rs 42.25, or 15.27 percent on the BSE.
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