Project fraternity shares view post RBI liquidity measures

 

Ramesh Nair, CEO and Country Head, JLL India 

 

“The steps undertaken by the Reserve Bank of India to ease the liquidity concern of Banks, NBFCs and other financial intermediaries is an acknowledgement of the liquidity issues faced by the financial system of the country as well as the industry.

 

Today’s announcement will give an initial fillip to the real estate sector. The Central Bank’s focus to provide credit flow to NBFCs is a key step. This will provide a boost to various real estate activities.

 

As per the latest data by RBI, NBFCs outstanding credit to the commercial real estate stood at Rs 1,29,359 crore as of end September 2019. The relaxation of NPA classification norms and extension of one year for commencement of projects to real estate developers by NBFCs will provide the much needed relief to the sector.

 

The refinance facility to the extent of Rs 10,000 crore to NHB is a welcome move to provide the much needed liquidity to Housing Finance Companies.”

 

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

 

“Liquidity, Recapitalisation & increased access to funds for MSME’s is the crux of the announcements made by the RBI Governor. The RBI’s decision to reduce the reverse repo rate further by 25 bps and reduction in LCR, will help bring liquidity in the market place with banks lending further. Crucially, the banks need to give up the cautious lending approach to ensure delivery of RBI measures on the ground. The refinance facilities of Rs 50,000 crores for NABARD & NHB, and mandatory 50% investment of TLTRO-2 to small, mid-sized NBFC’s will bring much needed capital for HFC’s & NBFCs, a move that was much required. The extension of realty loans by a year and NPA Classification relief for SMA accounts will go a long way in helping developers and MSME’s tide over the ongoing crisis.”  

 

Mohit Goel, CEO, Omaxe

 

Measures announced by RBI today bode well for financial sector as well as other employment generating sectors like MSME, Agriculture etc. Infusion of Rs 50,000 crore in NBFCs also augurs well for the real estate sector as they have been the main source of funding in the absence of bank finance in the last couple of years.