Bengaluru, Apr 17: Soon after RBI announced certain relief measures to counter the economic slowdown, Real Estate organisations, here in a joint statement, said that it will bring definitely bring adequate liquidity in system, facilitate bank credit flow, ease financial stress and help India emerge as a leader in a post COVID-19 world.
"IMF projection of India to post sharp turnaround in 2021-22 is a promising indication for the economy to bounce back in the near future. Relaxations for real estate is also important as the sector employs a large number of people. These are certainly very good announcements particularly on the liquidity front and today's announcements will ensure that even the smaller players will also get access to liquidity", Bennet& Bernard Group Founder and Chairman Lincoln Bennet Rodrigues said.
"The Government had announced several measures in March this year to ease the financial stress in the wake of COVID-19. Today, these steps have been further supplemented by the RBI’s announcements to slash the reverse repo rate by 25 bps and the Targeted Long-Term Repo Operations (TLTRO) 2.0 worth Rs. 50,000 crores to the NBFCs, MFIs and HFCs. We are delighted and welcome these efforts to boost liquidity further and ease financial stress. These instrumental steps are timely and very assuring", SOBHA Limited VC & MD J C Sharma said. We believe that the reduction of the reverse repo rate to 3.75 pc from the recent 4 pc will make lending attractive for financial institutions, which will hugely benefit homebuyers and the real estate sector.
Further, we believe that Rs 50,000 crores 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, they said.
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 projected India’s GDP growth of 1.9% 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.” Meanwhile Mr. RaghvendraNath, MD, Ladderup Wealth Management said that the economic distress because of the pandemic is beyond doubt.(UNI)