"Reduced repo rate by 75 bps and deferring loan repayment for three months is definitely a welcome move by RBI and the Government. This will allow commercial banks and NBFC’s including housing finance companies, ease the burden on real estate companies. However, there will not be much enhancement in the real estate market. Residential market has seen a downward trend with many of them likely to postpone the purchases. Commercial real estate as well might see some changes in the coming months." – Mr. Bijay Agarwal, MD, Salarpuria Sattva Group.
“It is truly heartening to see the Center think of everyone at this point - from the common man to the industries! And the timing of the RBI MPC announcement couldn’t have been better, as it promises a comprehensive package to address the multiple economic challenges faced by the country. The apex body has offered a much-needed relief to a large spectrum of sectors starting from financial services to corporate houses, MSME but more importantly to the common man, by deferring the imminent burden of loans and interest payments.
RBI’s focus on injecting liquidity of Rs 3.74 lakh crore to the system through its three-pronged approach is quite commendable. Especially, for real estate industry, with no registrations, and no visibility now on new launches this will help with cash flow management and better allocations of resources once lockdown is over. Furthermore reducing the repo rate by 75 point basis allows the bank to slash the interest rate further, which is good news for citizens and also homeowners with an EMI.
We hope all the financial institution will transfer these benefits to end-user at the earliest and the desired result can be achieved to put the economy on the path of recovery. Ultimately, when all this is over, the onus is on all of us together, to ensure we come out strong and make our economy bounce back.” - Mr. Ashish R. Puravankara, MD, Puravankara Ltd.