today’s announcement by RBI, Mr. Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE

"RBI’s recently announced liquidity measures are a clear step towards encouraging liquidity in the banking system, preserving financial stability and supporting overall economic growth.

In the wake of the evolving Covid-19 situation; the announcement in the reverse repo rate cut from 4 per cent to 3.75 percent should further push banks to lend to the productive sectors of the economy. In addition to this, RBI has also announced that loans given by NBFCs to real estate companies to get similar benefit as given by scheduled commercial banks. Announcement of refinancing facility for leading financial institutions such as NABARD and SIDBI, relaxation of stressed asset classification and resolution norms and provision of another window of Targeted Long Term Repo Operations worth INR 50,000 cr will provide additional fiscal stimulus to the economy. To further ease flow of funds to the housing sector, the National Housing Bank (NHB) has also been provided with a refinance facility of Rs. 10,000 Cr. for Housing Finance Companies (HFCs) as additional liquidity for individual housing loans, which is a much needed boost at this time."

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