Kolkata, Oct 4 : Tata Realty & Infrastructure Ltd MD and CEO Sanjay Dutt today reacting to RBI's decision said " It’s not about repo rate cut but the transmission and high spread lenders are still charging with the exception of few."
" We look forward to the Government’s constant support to help bring the real estate industry back to the global forefront while ensuring the overall economic growth of the country,” Mr Dutt added.
The RBI’s decision to cut the repo rate by 25 basis points to 5.1 per cent is the 5th rate cut this calendar year, taking it to 110 bps, however it is estimated that weighted average lending rate on fresh loans by commercial banks reduced only by 29 basis points, which is hurting and has raised a concern whether this is adequate to arrest volatility in the markets, cool down the overheated political climate and bring GDP to 7-8 per cent. More decisive 30-40 basis was envisaged by many. The markets overall are disappointed.
The demand for residential real estate space has been poor. The repo rate cut coupled with the slashing of the basic Corporate Tax to 22 per cent and the setup of the Stress Fund of INR 20, 000 crore are all measures to help revive the industry and thereby the economy. We believe this may not be adequate. Rise in NCLT cases is also not helping the sector.(UNI)