SUMMER INTERNSHIP PROJECT REPORT

Topic Name:
Study the role of RBM in real-estate banking .

- By Rutuja Bhivsane
Roll no. 22147
Content :

 Introduction

 About Company

 Objectives

 Literature Review
Introduction :
 The Real-estate Industry has become the pillar of economy from more
then twenty years ago, however the development of real estate industry
has experienced a period of growth.
 Real estate and banking are two intertwined sectors that play a pivotal role
in the economic growth of any country. As real estate transactions involve
significant financial investments, the integration of technology and data-
driven approaches has become crucial in modern real estate banking.
 The definition of corporate financing efficiency mainly includes: the
enterprise financing process is actually a resource allocation.
 Real Estate Banking Management, in the context of the real estate sector,
refers to the specialized financial services and strategies employed by
banks and financial institutions to support real estate developers,
investors, and property buyers.
COMPANY PROFILE :

Aarohiinfo an Indian strategic Micro-finance

lending company serving with the objective
.
to fulfil the purpose of financial inclusion .
They are making financial resources available
to create more wealth through their M-
FinTech platform.
 Sustainable banking
As a sustainable bank, SSD Multistate strives to increase customer capacity and compatibility. Financial education
is something we strongly believe in.

Real estate banking management is the concept where AFI management limited (financial institute)
and construction companies coming together to address the issue of decline of real estate industry.

The objective of this project is to conceptualize the

Financial Inclusion and inculcate banking to improve
affordability and sustainability.
Objectives :

To analyse relation between Real-Estate and banking.

To examine strategies and solutions for managing Real-Estate.

To understand the role of RBM in property development.

Literature Review :
 Yemin Miao
College of Civil Engineering and Architecture, Zhejiang University, Hangzhou , China. DOI: 1
0.4236/ojbm.2019.72060 - There was a brief conceptual explanation and background introduction of real
estate finance and its risks, this paper mainly focused on the relationship between real estate price
fluctuation and financial risk, real estate bubble, the formation and transmission of real estate financial
risk, and the control of real estate financial risk.

 Miao, Y. (2019) Literature Review of the Research on Real Estate Financial Risk. Open Journal of Business
and Management, 7, 876-891. doi: 10.4236/ojbm.2019.72060. - the real estate industry was having a
strong dependence on finance. Real estate finance linked to real estate refers to the general term of
investment, financing and related financial services through currency circulation and credit channels were
in the process of real estate development, construction, operation, circulation and consumption.

 Gong Xiaolin and Yang Shuzhen combined with China’s macro financial data from 2000 to 2008 – The
undecided equity analysis method to explain the evolution mechanism of macro financial risks. During the
economic growth period, the value of various assets rose steadily, and when the economy was impacted by
risks, assets the value usually falls sharply.
 Liang and Cao (2007) found the positive impact of the bank credit outstanding balance, the economic growth and
the interest rate on the Chinese real estate market for the period from 1999 -There was a positive long-term
relationship between the bank credit outstanding balance and the real estate market in Spain.

 Hott (2011) also claimed that the banking system affected the crisis in the real estate market through the provision
of credit capital for the real estate market. In Malaysia, Ibrahim and Law (2014) – It Showed that the bank credit
outstanding balance had a positive relationship with the real estate market in both short and long term, in which
the impact of the bank credit outstanding balance on the real estate market was greater than the impact of the real
estate market on the bank credit outstanding balance.

 The real estate market affects the banking system development through the credit effect (Anundsen & Jansen,
2013) - The credit effect indicates that as the real estate market grows, real estate holders will become more
profitable because the increase in the asset value helps them easily access loans and real estate mortgages for bank
loans, and the increase in the credit provided by the banking industry promotes the profitability and the
development of the banking system. As a result, it can be said that a relationship exists between the banking
system development and the real estate market through the wealth effect and the credit effect.
References :
 Tardivo, Giuseppe, et al. "Role of financial services and real estate management--towards a new value
chain: exploratory research findings." Journal of Financial Management & Analysis, vol. 28, no. 2, July-
Dec. 2015.

 Tonghuashun Financial Database, Data center of HK Stocks, Financial indicator Analysis, 2018(7). 1234

 Barry C., Rodriguez M. and Lipscomb J. "Diversification Potential from Real Estate Companies in
Emerging Capital Markets". Journal of Real Estate Portfolio Management, 1996.

 Chaviano D. B. "Real Estate Investment in Cuba: Is Now the Right Time?". Department of Urban Studies
and Planning, Massachusetts Institute of Technology, 2008.

 Deloitte. "Real Estate Capital Markets Industry

Outlook“.http://www.deloitte.com/dtt/cda/doc/content/Deloitte%27s%202008%20Real%20Estate
%20Capital%2 0Markets%20Top%2010(1).pdf, 2008.
 Deutsche Bank. "Building up India - Outlook for India’s real estate markets".
http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000198335.pdf, 2006

 Economist Intelligence Unit. "India Country Profile". http://www.eiu.com/report_dl.asp?

issue_id=1423479527&mode=pdf, 2008

 Ernst and Young. "The Indian Real Estate Sector - Opportunities for Australia". www.ey.com, 2005.

 ICICI Venture. "India – Attractive Real Estate Investment Destination".

http://www.assocham.org/events/recent/event_239/Aanadjit.pdf, 2008.

 Kotak Investment Advisors. "Infinite India 2008 Conference Summary". Kotak Realty Fund,
http://www.realtyfund.kotak.com/pdf/Infinite_India_Summary08_transcript.pdf, 2008
Questionnaire :
Name :- Married / Unmarried :-
Age :- Gender :-
Qualification :- Income (Annual) :-

Q1. Do you believe that the banking sector plays a significant role in the real estate market’s? Yes / No
Q2. What is your role or involvement in the real estate and banking industry
a)Real Estate Professional
b)Banking Professional
c)Other (Please specify)
Q3. How would you rate the importance of real estate banking in property development?
a) Very important
b) Somewhat important
c) Not important
Q4. What are the main types of real estate loans provided by banks?
a) Residential mortgages
b) Commercial mortgages
c) Construction loans
d) Other (please specify)
Q5. How do banks assess the creditworthiness of borrowers for real estate loans?
a) Credit score and financial statements
b) market analysis
c) Both a) and b)
d) Other (please specify)
Q6. What are some common challenges faced by banks in real estate lending?
a) Market fluctuations
b) Default risk
c) Regulatory compliance
d) Other (please specify)
Q7. How can banks analyze risks in real estate lending?
a) Diversifying loan portfolios
b) Conducting thorough examination
c) Implementing risk management strategies
d) Other (please specify)
Q8. What are some strategies for effective real estate management?
a) Property maintenance and repairs
b) Tenant screening and lease management
c) Financial analysis and budgeting
d) Other (please specify)
Q9. How can technology and innovation impact real estate banking and management?
a) Streamlining processes and improving efficiency
b) Enhancing customer experience and digital services
c) Data analytics for better decision-making
d) Other (please specify)
Q10. What are the key factors that influence real estate financing decisions by banks?
a) Interest rates and market conditions
b) Property location and type
c) Borrower's creditworthiness and financial stability
d) Other (please specify)
Q11. How do banks assess the value of a property for lending purposes?
a) Appraisal by certified professionals
b) Comparative market analysis
c) Both a) and b)
d) Other (please specify)
Q12. What are the potential benefits of collaboration between real estate developers and banks?
a) Access to funding for development projects
b) Expertise and guidance from banks in project planning
c) Building long-term relationships for future ventures
d) Other (please specify)
Q13. How do banks support real estate developers in managing cash flow during project construction?
a) Offering construction loans with flexible disbursement schedules
b) Providing lines of credit for working capital needs
c) Assisting with project budgeting and cost management
d) Other (please specify)
Q14. How do banks play a role in financing real estate projects?
a) Providing loans for property purchase and development
b) Offering mortgage options for homebuyers
c) Facilitating construction financing
d) Other (please specify)
Q15. What are some key challenges faced by real estate developers in managing their projects?
a) Securing funding for development
b) Meeting regulatory requirements and compliance
c) Dealing with market fluctuations and uncertainties
d) Other (please specify)
Q16. How can banks support real estate developers in minimizing risks in property development?
a) Offering risk management services and advice
b) Providing financial tools for forecasting and analysis
c) Collaborating on project feasibility studies
d) Other (please specify)
Q17. What are some strategies for effective real estate portfolio management?
a) Diversifying the portfolio across different property types and locations
b) Regularly reviewing and optimizing property performance
c) Implementing risk mitigation strategies
d) Other (please specify)
Q18. How does real estate banking contribute to property development and urban planning?
a) Financing infrastructure projects for urban development
b) Supporting affordable housing initiatives
c) Collaborating with government agencies on urban revitalization
d) Other (please specify)
THANK YOU !