Friday, April 17, 2020

Mr. Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd on the RBI announcement

“Today’s announcements by RBI are steps that would maintain adequate liquidity in the system, incentivise bank credit flows and lessen the financial stress. The encouraging signs will uplift the positive sentiment of the real estate sector. The relaxation of asset classification norms will ease the stress on NBFC lending to the real estate sector besides ensuring stable costs of funds and avoiding distress sale of assets by developers. The move to conduct TLTRO 2.0 with an amount of Rs 50,000 crore will help NBFCs and HFCs as banks would be required to allocate 50% of the funds to them. The special finance facility extended to financial institutions, especially NHB will further boost the credit to the realty sector. In the current time where market sentiments need to improve, the announced measures will help the organized and established developers to gain maximum mileage and drive sales in the upcoming time.”

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