The hike in export credit refinance limit from 15 per cent of the outstanding export credit of banks to 50 per cent by the Reserve Bank of India is a “very positive’’ step, according to Mr M. Bhagavantha Rao, Managing Director, State Bank of Hyderabad.
“The release of Rs 30,000 crore through this measure will allow banks to increase the finance for exporters in the present crucial juncture,’’ Mr Rao told Business Line on Monday.
Though banks expected a 25 basis points cut in repo rate, inflationary pressures might have impacted RBI’s decision to keep rates unchanged, he added.