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Our Bureau

Hyderabad, April 27

Mr Amitabha Guha, Managing Director, State Bank of Hyderabad: The whole credit policy has the objective of containing inflation. It is growth-oriented. The reduction of risk weight on residential housing loans to 50 per cent from 75 per cent for loans up to Rs 20 lakh is a good move for the housing loan segment. Further, as more funds are required for investing in infrastructure and creating facilities for the corporates, the $100-million increase in allowing corporates to repay ECBs ahead of schedule without prior approval from the RBI would augur well for the industry. Similarly, increase of aggregate ceiling on overseas investment by MFs to $4 billion from $3 billion will open up new opportunities.

A finance official of Dr Reddy's Laboratories: The policy seems to be industry-friendly. The increase in the limit to repay ECBs ahead of schedule to $400 million can be a step towards further relaxation in future. It facilitates better liquidity management by the corporates. The hike in overseas investment limit for Indian companies to 300 per cent of their net worth will be good for Indian acquisitions abroad.

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