Money & Banking

With RBI’s additional liquidity measures, realtors hopeful of making a turnaround

Anil Urs Bengaluru | Updated on April 17, 2020 Published on April 17, 2020

“The reduction of the reverse repo rate to 3.75 per cent from the recent 4 per cent by the Reserve Bank of India (RBI) will make lending attractive for financial institutions, which will hugely benefit homebuyers and the real estate sector,” said JC Sharma, VC & MD, Sobha Limited.

Reacting to RBI’s announcement, Sharma further said, “We believe that ₹50,000 crore of infusion into the financial system will ease liquidity issues faced by the NBFCs and the MFIs which will result in more funding to the corporate sectors. More importantly, the loans given by the NBFCs to real estate sector will avail similar benefits as given by commercial banks. This was a required step towards both the NBFC and the real estate sector.”

Additionally, the RBI has provided for one year of project completion extension on asset classification for NBFC loans to the CRE segment, which is laudable keeping the lockdown and migrant labour workforce issues in mind. “The focused measures to keep credit flowing into critical areas of the economy will help revive the economy. The fact that the projected India’s GDP growth of 1.9 per cent by IMF is highest in G20, shows the country’s resilience in challenging times. We believe India will make a turnaround in times to come,” Sharma said.

Ashish R Puravankara, MD, Puravankara Limited, said: “But it is also essential that these measures should be implemented in a time bound manner to improve the overall operations (of the industry) and boost customer sentiments. Realty industry will have to revolutionise the way it operates to gain momentum, as it still remains the second largest employer and is an essential cog in India Inc.”

He further added, “Of course we hope, that all banks will incorporate these new rules, and we eagerly await the detailed guidelines on the same. The sector, together with the various industry bodies, has to devise a long-term systematic plan to ensure safe and prosperous work cultures. The spirit of the RBI with these sops is in the right direction to help a capital-intensive sector like construction, but the entire economic machinery needs to work in tandem to ensure the nation recuperates fast.”

Published on April 17, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.