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Our Bureau

MR S. K. Poddar

New Delhi, April 18

Congratulating the RBI for maintaining stability in interest rates, the FICCI President, Mr Saroj K. Poddar said the new credit policy would ensure momentum of growth, particularly in manufacturing. However, the RBI has displayed its concern by raising the risk weightage of real estate and personal loans, and by tightening the exposure of banks to capital markets. These measures are intended to decelerate non-food credit growth to 20 per cent. This, according to the chamber, shows the regulator's intention to ensure credit flow to agriculture and manufacturing, while seeking to improve credit quality by reining in the flow of funds to real estate, personal loans and capital market segments. Welcoming the policy to leave the Bank Rate as also the Repo Rate unchanged, Assocham has said that a cut in the CRR would have helped improve liquidity, which is essential in maintaining 8 per cent GDP growth.

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