RBI’s Rs 10,000 crore liquidity facility to lower credit cost, boost housing demand
Industry leaders appreciate RBI’s accommodative stance amid high rate of inflation
Mumbai Realty players, which are struggling to cope up with the economic downturn due to the coronavirus pandemic, have hailed the RBI’s liquidity facility of Rs 10,000 crore for National Bank for Agriculture and Rural Development (NABARD) and National Housing Bank (NHB) saying that it will partially tackle the present liquidity crunch and boost demand before the onset of the festival season. Besides, the loan resolution plan, which allows for payment moratorium up to 2 years, for corporate and personal borrowers are expected to provide a breather to stressed real estate developers and individual borrowers in the housing segment alike.
‘’Liquidity of Rs 10,000 crore to be infused in NABARD and NHB will definitely aid the reeling sector to tide over the liquidity crisis. This indicates that the fiscal measures by RBI have started showing the positive outcomes on the economy,’’ said Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO). He further observed that opening up the window for restructuring of loans to companies, individuals and MSME under mandated safeguards grants breather to the liquidity strapped industry.
However, Manju Yagnik,
Vice Chairperson, Nahar
Group said the industry was expecting a further extension for loan moratorium to help recovery as a large part of the country is opening up for business and need liquidity support. "An extension in the loan moratorium would have helped lower and middle-income groups to better manage their finances. Growth recovery in rural areas has been robust as per RBI's estimates, and would expect a similar recovery Pan-India," she added.
Shishir Baijal, CMD of Knight Frank India said, ‘’While the sector was looking at a further revision in policy rate, to boost demand, we appreciate the accommodative stance by the RBI, in the wake of high rate of inflation which may have necessitated keeping policy rates unchanged. We hope that these measures will provide relief to the real estate sector and help them maintain their status till the economy starts to regain its growth momentum”.