The Reserve Bank of India (RBI) also trimmed India's economic growth projection by a similar margin to 9.5 per cent in June this year.
Most regional economies will remain below their pre-pandemic levels into 2022, and some of the losses from the crisis will be permanent, ADB economists said.
The growth forecast for India in fiscal year 2021 was revised down, as the spike in COVID-19 cases during May dented the recovery.
An official release from the ADB said the loan was approved on September 3, and will provide access to inclusive, resilient, and sustainable housing for the urban poor in the State.
Economic opportunities have increased rural-urban migration in the state, which already has one of the highest urbanisation rates in India.
The Asian Development Bank has downgraded India's economic growth forecast for the current financial year to 10 per cent.
Sri Lanka has reportedly decided to obtain a loan of USD 150 million from the Asian Development Bank to buy vaccines and boost refrigeration and transport facilities.
The pact will help improve connectivity to important towns, rural areas, and pilgrimage and tourist destinations in the north-eastern state, ADB said.
The financing will be used to address the immediate coastal protection needs and for strengthening the institutional capacity of Karnataka's public works, ports and inland water transport department.
In general, GST is likely to reduce the tax rate on goods as compared to earlier times, while tax rates on services are expected to increase, the blog said.
The bank is also prepared to invest up to USD 5 billion during 2018-22 for infrastructure building to develop East Coast Economic Corridor.
Finance Minister Arun Jaitley also asked the multilateral lender to set up a regional hub in New Delhi for South Asia region so that a majority of the proposals could be processed there speedily.
The project will help Assam to enhance capacity and efficiency of its power distribution system to improve electricity service to end users, the Ministry statement read.