Industry welcome RBI's decision to keep lending rates unchanged

Nitesh Kumar, MD & CEO, Emami Realty Ltd, said in a statement: “Today RBI has once again considered the role of the Real Estate Sector in the economic growth of the country. With the new initiatives, Risk weights to be assigned to all home loans under as per loan-to-value on home loan make it safer and TLTRO would reduce cost of Borrowing for NBFCs this will boost the credit sentiments and bring much needed positivity in the sector. We can say it is good and expecting to give more stability to the economy.”

Abhimanyu Sofat, Head of Research, IIFL Securities, said: "“Despite not cutting benchmark interest rate, RBI has announced a significantly dovish monetary policy will slew of measures. Doubling of size of open market operations to Rs. 20,000 cr, RBI participation in state development loans, allowing co-origination of loans by HFCs are combined big ticket announcements for both bond market and financial sector stocks."

 "Housing finance companies, small NBFCs are likely to outperform as a result of these announcements.

"RBI is expecting a significant fall in inflation in H2 which has been higher due to supply chain challenges to justify its dovish stance.

"Extension of HTM limits by additional one year, on tap TLTRO are going to provide significant relief to the bond market.

"Investors can increase their allocation to the BFSI space as we see more availability of money at lower cost to help in strong rebound in the sector," Sfat said.

The decision of the RBI to discontinue the 'automatic caution listing ' of exporters whose shipping bills were pending for more than two years is a great relief to the exporting community , battling the pandemic-hit global meltdown, EEPC India has said.

'' While the exporters would have liked further easing of interest rates; the RBI has responded to our call reposing trust in exporters. Discontinuing the automatic caution-listing is a welcome move, " EEPC India Chairman Mr Mahesh Desai said.

Tanuj Shori, Chief Executive officer, Square Yards, said: "The linking of risk weightage only to Loan to Value (LTV) ratio vis-a-vis the earlier practice of risk weightage with both pricing and LTV augurs well for the sector particularly for high-end properties which have been facing severe downward demand pressures."

"High-value loans are expected to get cheaper with rationalisation of associated risk weightage. The increase of retail exposure from Rs 5 crore to Rs 7.5 crore will help individuals and small businesses alike and it would help the real estate sector in general," he said.