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Industry Response on RBI MPC’s GDP Projections

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Here are some industry representatives sharing their perspective on today’s announcement from RBI Governor’s statement:

For RBI’s MPC & GDP related announcements, click here

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com said:

“The decision of RBI to keep the Repo Rate unchanged along with accommodative stance is understandable at this juncture, although a further cut in the key rates would have given a boost to current demand uptick that we have seen recently. The measures announced by the RBI Governor today for liquidity enhancement in the economy is indeed a good step and was much required. Real estate has been badly hit during the pandemic and the recent Budget announcements and the RBI’s decision today will help the sector to cope up with markets’ uncertainties better in the near future.”

 


Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital commented

It is heartening that RBI acknowledges that NBFCs do a commendable job to provide credit to the underserved and New To Credit (NTC) segments in various sectors. The exclusion of credit to MSME from NDTL would expand the credit for MSMEs and this combined with the Co–Lending scheme between Banks and NBFCs can open credit for the NTC MSME customers.

The TLTRO on Tap scheme to NBFCs for incremental lending will usher in effective liquidity for NBFCs, which would work hand-in-hand with the new co-lending guidelines. The positive impact is that it would enhance the NBFCs’ ability to provide a credit lifeline to capital-starved MSMEs, including the NTC small businesses, supporting not only their revival and stabilization but also help look at growth. The credit impact can be further expanded significantly with the extension of Partial Credit Guarantee (PCG) Scheme for portfolio purchase of loans for these sectors.


Prasoon Chauhan, Founder & CEO, BlackOpal stated:

“While the RBI has kept the repo rate unchanged, we feel that real estate will benefit from the position of the Apex bank that the NBFCs will have access to the targeted long-term repo activity (TLTRO). With this decision, we hope the liquidity situation will improve and the NBFCs will extend financial support to the real estate sector. The demand for real estate assets is already strong and we are seeing increased sales in the coming quarter due to multiple factors including low home loan interest rates.”

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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