Reactions of real estate developers on announcements made by RBI Governor in order to support the major sectors amid ongoing crisis

New Delhi, April 17, 2020:

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com

The various measures announced by the RBI to maintain liquidity in the system and ease the flow of credit including reducing the reverse repo rate by 25 basis points will help ease some financial stress in the system. This move by the RBI will hopefully nudge banks to increase lending to various sectors of the economy, which is the need of the hour.

Mohit Goel, CEO, Omaxe Ltd

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 absence of bank finance in the last couple of years.

Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM

Infusion of liquidity in the market is of utmost importance and the latest announcement will definitely help the economy. This time the RBI has addressed the realty sector too, which is a clear indication that the government understands the importance of the second largest employer in India. All the economic machinery has to work together to make sure the country comes out of this conundrum as soon as possible.

Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)

The second announcement by the RBI during the lockdown period is an indication that the government is working tirelessly to find out ways to address the situation. Real estate was demanding the steps that could help the sector and now it is again up to the banks to take a leaf out of RBI announcement where it has talked about the real estate sector and extend a helping hand to real estate

Deepak Kapoor, Director, Gulshan Homz

The reduction in reverse repo rate by 25 basis points and infusion of Rs 50,000 crore in NBFCs as announced by apex bank is indeed a welcome move. The move is likely to prompt banks to lend more. Also, the relief on loans provided to commercial real estate by NBFCs, which are stalled for reasons beyond their control will help the sector immensely.

Uddhav Poddar, MD, Bhumika Group

I welcome the announcements made by the RBI Governor today. RBI has taken these measures as they realised that despite lowering of rates the banks were only lending to large corporates and not to mid size and small businesses or to real estate, hence RBI has provided liquidity to NBFC’s which mainly service the mid and small businesses and to the real estate sector. Real estate is a capital intensive business and needs liquidity infusion and we hope this and more steps from the RBI will prompt banks and NBFC’s to provide the required liquidity in the sector “.

Raman Gupta, Director- Branding and Construction, GBP Group

With Covid badly impacting the cash flow of all the sectors of the economy including real estate, most of the sectors will rely heavily on financial sector for survival. In such a scenario maintaining liquidity in the system becomes the key and today’s RBI announcements are a step in the same direction. Hopefully, banks will also participate in the endeavor.

Prateek Mittal, Executive Director, Sushma Group:

The reduction in reverse repo rate by 25 basis points and infusion of Rs 50,000 crore in NBFCs as announced by apex bank is indeed a welcome move. Also, the restructuring for upto 1 additional year of loans has also been allowed to the real estate projects which will definitely contribute towards easing the liquidity crunch as well. We await further steps to be announced by the RBI as mentioned by the Governor.

Ankit Kansal, MD&CEO 360 Realtors

After the extension of the nationwide lockdown, some slowdown in the economy was inevitable. The Real estate sector will also not remain immune to the challenge & hence the industry was looking forward to concentrated efforts by the govt. In this regard, the industry welcomes the recent steps by the govt. to bolster liquidity, build credit capacity, & offer financial incentives.

As the govt. has pledged to refinance the NBFCs, roll out stimulus packages for NHB, NABARD, & SIDBI, etc.  This will boost the liquidity in the market & also offer credit support to the realty sector. Also, the decision to allow NBFC to extend realty loans by a year under certain circumstances will give some relief to the sector. Interestingly, the inflation rates have declined and are expected to remain within 4% in the 1st half of 2020. This will offer ample policy maneuvering bandwidth to the central Bank & take more steps towards liquidity injection.

Corporate Comm India (CCI Newswire)