Pankaj Sharma, President & Head - Corporate Planning & Strategy, Religare Finvest Limited
"It is a welcome step by the RBI. Reduction in repo rate by 40 bps to 4% will further complement the stimulus package announced by the government recently and expand much required liquidity in the system. Another 3 month extension on loan moratorium and permission to convert accrued interest on the moratorium into a funded interest term loan to be paid during the tenure of the loan, will ease the pressure on the lending entities, especially NBFCs. Allowing restructuring of loans till Mar'21 without downgrade of asset classification would have further helped ease situation for both borrowers and NBFCs/banks. We are hopeful that the RBI will address this issue soon. With ongoing collapse in both urban and rural demand, we believe that the decision of the MPC would create favorable recovery conditions for the economy. The accommodative policy maintained by the RBI is also encouraging as the central bank has indicated its willingness to go for further easing, if the situation so warrants." |
