Industry reacts to RBI’s move

Chennai: The multiple announcements made by Reserve Bank of India on Friday have attracted reactions from industry leaders.

Anshuman Magazine, chairman and CEO – India, South East Asia, Middle East & Africa, CBRE, said, “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 Rs 50,000 crore will provide additional fiscal stimulus to the economy,” he said

Indian Bank MD and CEO Padmaja Chunduru said the tone of RBI was of empathy and support to needy sectors. “The TLTRO focused on mid size NBFCs and MFIs is positive”, according to an Indian Bank release here.

She said the 90 day extension in NPA reckoning for stressed standard assets as on March one effectively postpones NPA classification for accounts that were slipping to NPA between March and May.