Real Estate Industry

The REIT way for recapitalizing Indian banks

  1. Context: Budget allows full pass-through for real estate investment trusts (REITs) and infrastructure investment trusts
  2. How? By removing the dividend distribution tax (DDT) at the special purpose vehicle (SPV) level under a business trust
  3. For banks: There are possibilities in the use of REIT structure to help state-owned banks not only add to tier-1 capital, but also raise cash
  4. A bank REIT would be a very sought-after product in view of the quality of both assets and a well-regulated bank
  1. Context: Budget allows full pass-through for real estate investment trusts (REITs) and infrastructure investment trusts
  2. How? By removing the dividend distribution tax (DDT) at the special purpose vehicle (SPV) level under a business trust
  3. For banks: There are possibilities in the use of REIT structure to help state-owned banks not only add to tier-1 capital, but also raise cash
  4. A bank REIT would be a very sought-after product in view of the quality of both assets and a well-regulated bank
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