That their expectation of a cut in repo rate at least by 25 bps was not to be, came as a disappointment, but the 50 bps reduction in statutory liquidity ratio (SLR), the knitwear exporters said “is a welcome move”.
With this reduction in SLR, exporters in the Tirupur knitwear cluster expect banks to be more liberal in extension of credit, as also the rates turning more competitive among banks.
“The banks should support the knitwear exporting units at this juncture to maintain the growth rate and invest in facilities,” Tirupur Exporters' Association President A Sakthivel said.
On replacing the export credit refinance with provision of system level liquidity, he said it should not affect the credit to the exporting units, particularly the SMEs.