New Delhi, August 07, 2020: The RBI’s Rs 5,000 crore support to National Housing Bank (NHB) will give the housing sector a boost and benefit both developers and buyers. With greater finance flow, the developers in need of small capital can now complete their stalled projects. Along with this, the window to enable MSME lenders to restructure loans will ease burden on genuine borrowers. Incentives to banks to lend to priority sector should also be transferred to NBFCs and HFCs, as affordable housing is also one of the priority sectors and a key industry for the economy.
Not cutting the rates any further will protect the returns of savers and will not push borrowers, including banks and NBFCs, to lend any further and help in maintaining asset quality in stressed sectors. Maintaining an accommodative stance indicates the RBI will intervene to provide the right push and direction to growth when the economic activities start picking up in future.
Corporate Comm India (CCI Newswire)