RBI Governor Shaktikanta Das addresses media on Thursday.
RBI Governor Shaktikanta Das addresses media on Thursday.
ANI

Mumbai Realty players, which are struggling to cope up with the economic downturn due to the coronavirus pandemic, have hailed the RBI’s liquidity facility of Rs 10,000 crore for National Bank for Agriculture and Rural Development (NABARD) and National Housing Bank (NHB) saying that it will partially tackle the present liquidity crunch and boost demand before the onset of the festival season. Besides, the loan resolution plan, which allows for payment moratorium up to 2 years, for corporate and personal borrowers are expected to provide a breather to stressed real estate developers and individual borrowers in the housing segment alike.

‘’Liquidity of Rs 10,000 crore to be infused in NABARD and NHB will definitely aid the reeling sector to tide over the liquidity crisis. This indicates that the fiscal measures by RBI have started showing the positive outcomes on the economy,’’ said Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO). He further observed that opening up the window for restructuring of loans to companies, individuals and MSME under mandated safeguards grants breather to the liquidity strapped industry. A flexible repayment scheme under the new resolution framework shall bring in the much-needed relief to resume operations smoothly.

However, Manju Yagnik, Vice Chairperson, Nahar Group said the industry was expecting a further extension for loan moratorium to help recovery as a large part of the country is opening up for business and need liquidity support. "An extension in the loan moratorium would have helped lower and middle-income groups to better manage their finances. Growth recovery in rural areas has been robust as per RBI's estimates, and would expect a similar recovery Pan-India," she added. Yagnik emphasised the need for ample system liquidity and lower rates to boost demand and credit offtake.

Shishir Baijal, CMD of Knight Frank India said, ‘’While the sector was looking at a further revision in policy rate, to boost demand, we appreciate the accommodative stance by the RBI, in the wake of high rate of inflation which may have necessitated keeping policy rates unchanged. We hope that these measures will provide relief to the real estate sector and help them maintain their status till the economy starts to regain its growth momentum”.

Further, Rohit Poddar, MD Poddar Housing opined that the infusion of Rs 5,000 crore in NHB will provide much needed cushioning for the housing finance companies to lower the home interest rates. ‘’ This will translate into an upsurge in demand with a lower cost of credit to the homebuyer and materialise in a likely upsurge in residential inventory offtake especially in the near onset of festivity in the country,’’ he opined.

According to Farshid Cooper, MD, Spenta Corporation the liquidity facility will help non-banking finance companies and housing finance companies to lend more money to homebuyers and generate demand back in the market. ‘’With unsold inventories available in major markets, homebuyers should consider buying homes now,’’ he noted.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in