RE sector applauds RBI Repo rate cut
Amid the lockdown due to COVID-19, economic activity in the country is under tremendous stress. The steps taken by RBI will ensure that finance is kept flowing to keep the domestic economy protected. The real estate sector considers this a much-needed step considering the present situation of the country. J C Sharma, VC & MD, SOBHA Limited responded, “The timely and effective steps taken today by the RBI to mitigate the economic impact of COVID-19 and maintain financial stability in the country is highly appreciated. We welcome these commendable steps by the RBI for reducing the Repo rate by 75 BPS and Reverse repo rate by 90 basis points to 4%. This much needed move in these times will hugely benefit homebuyers and the real estate sector. The rate cut is further expected to complement other monetary measures. These accommodative measures will ensure that adequate liquidity is available to all constituents and COVID-19 related liquidity constraints are eased.” Manoj K. Agarwal, Chief Executive Officer, Viviana Mall, “Much needed relief has been provided by the RBI following today’s Monetary Policy Committee meeting. This combined with other technical measures announced like auction of 1 lakh crore long term repos starting today, increase in SLR percentage and reduction of cash reserve ratio will aid in required liquidity and availability of huge funds to banks for providing loans will go a long way in supporting and boosting the economy." Piyush Gupta, Managing Director- Capital Markets (India), Colliers International. "Government on expected lines have slashed key lending rate by 75 bps and will to some extent help provide respite to struggling Real Estate Sector. The moratorium of 3 months in both Principal and Interest will provide temporary relief in cash flows to Borrowers – both Retail and Developers. The extension of moratorium will avoid any provisioning impact on the Balance Sheet of Banking and non-Banking companies and keep more capital for credit in the system". Ashish R. Puravankara, MD, Puravankara Ltd. shared, “It is truly heartening to see the Center think of everyone at this point - from the common man to the industries! And the timing of the RBI MPC announcement couldn’t have been better, as it promises a comprehensive package to address the multiple economic challenges faced by the country. The apex body has offered a much-needed relief to a large spectrum of sectors starting from financial services to corporate houses, MSME but more importantly to the common man, by deferring the imminent burden of loans and interest payments." Anurag Mathur, Chief Executive Officer, Savills India added, After the Finance Minister’s announcement of Rs 1.7 lakh crore package yesterday, the central bank has made some bold steps to ensure that the financial burn for individuals and businesses remains minimal. Today’s radical lowering of rates by 75 bps along with other steps – foregoing the orthodox approach – are exemplary. This is an unprecedented step by the RBI, demonstrating its ability to think strongly out-of-the-box when it needs to.’’
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