Players in real estate segment and analysts have welcomed the measures announced by Reserve Bank of India Governor Shatikanta Das to infuse liquidity into the financial markets to deal with the crisis arising out of COVID-19 outbreak.
Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd, said, “The RBI’s decision to slash reverse repo rate by 25 basis points and additional liquidity measures will provide some relief to the sector, which had already been dealing with its own set of issues prior to the pandemic.
“These measures are bound to encourage banks to lend more, thereby improving the credit flow and giving more purchasing power to home buyers and investors.”
Niranjan Hiranandani, president, Assocham and NAREDCO said, “For real estate, the announcement that loans given by NBFCs to real estate companies would get similar benefits as those given by the scheduled commercial banks is positive.”
“The RBI had earlier permitted extension by one year without asset classification downgrade, if DCCO was delayed for reasons beyond control of promoters. This relief is now also allowed for NBFCs; loans by NBFCs to commercial real estate will get the same relief. This move will positively impact NBFCs and real estate,” Mr Hiranandani said.
Anuj Puri, chairman, Anarock Property Consultants, said, “the allotment of ₹10,000 crore to the National Housing Bank is a big move for the real estate sector reeling under a liquidity crisis. It will help provide capital to HFCs and eventually provide major relief to developers battling liquidity issues in COVID-19 times.”
Manju Yagnik, vice-chairperson, Nahar Group and vice-president, NAREDCO (Maharashtra), said, “We welcome measures announced by RBI Governor aimed at largely to maintain liquidity in the system, facilitating and incentivising bank credit flows and easing financial stress.These steps would prove to be a booster dose to the economy, impacted by COVID-19.”