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New Delhi, February 7th, 2020: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 per cent — a 10-year low in its last policy review of the financial year 2019-20 (FY20).
Commenting on the announcement Mr. Mohit Ralhan, Managing Partner & CIO, TIW Private Equity said, “RBI has continued to keep the accommodative policy stance. It has already cut the policy repo rate by 135 bps since Feb last year. However, banks have not passed the rates cut fully to customers. The decrease in requirement of cash reserve ratio for housing, auto and MSME loans for 6 months is a positive move which is likely to result in a better lending environment.”
Further sharing views on real estate Mr. Siddhartha Mohanty, MD & CEO of LIC Housing Finance said, “We believe RBI Policy announced today will ease the norms to give relief to commercial real estate developers. RBI’s decision about the extension of Date of Commencement of Commercial Operations (DCCO) of project loans for commercial real estate, will provide comfort to companies developing such projects and also their lenders. It will benefit the banks as they will not need to downgrade the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector”.
The wealth expert Mr. Raghvendra Nath, MD of Ladderup Wealth Management said, “The RBI left the repo rates unchanged on the expected lines. There was wide spread expectation that the RBI may keep the repo rate unchanged because of spike in inflation in the last 2 months. Also the accommodative stance of the RBI and the decision to support growth going forward were as per market expectations. The CRR exemptions against the loans given to stressed sectors and one time restructuring for MSME should boost investor confidence and drive growth going forward. Also with the introduction of linking loans given to medium enterprises to an external benchmark should ensure better and faster transmission of rate cuts going forward."
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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