India Inc looks at easier loans now
The Financial Express, March 5, 2009, Page 2
fe Bureau, Mumbai, New Delhi
India Inc on Wednesday welcomed the Reserve Bank of India’s move on rate cuts as it believed that it will contribute to the positive sentiments in the current downturn scenario. After market hours, the Reserve Bank of India said it was lowering the repo rate, at which it lends to banks, to 5% from 5.5%, effective immediately. It also cut the reverse repo rate, at which absorbs excess cash from the banking system, to 3.5% from 4.0%, effective immediately, it said in statement.
Ganesh Natarajan-chairman, Nasscom & CEO, Zensar Technologies said, “The steps taken by Reserve Bank of India will boost the domestic IT market. It will improve the demand environment, and such a move will perk up the demand situation and people will be more likely to spend. This move will have a positive impact on the Indian industry as a whole.”
Meanwhile, the apex chambers have said that the repo rate cut will signal the Indian banking sector to cut their interest rates which will in turn help in bring back the consumer to the market.
Chandrajit Banerjee, director general, Confederation of Indian Industry said that the RBI’s decision to reduce the repo and reverse repo by 50 basis points is a welcome move and the industry has been expecting it. He further said that this would induce banks to look at their lending rates and also act as an enabler to lend rather than parking funds in government deposits. CII expects that this would help create credit availability for the industry and also lower the cost of credit.
Ficci, however, said it is waiting for a composite monetary stimulation package. It expects reverse repo rate at 3% and a further cut in repo rate.
Harsh Pati Singhania, president, Ficci said that by cutting the repo rate, the Reserve Bank has signaled to the Indian banking sector to cut their interest rate to consumers and producers alike. Ficci has urged the banks to take this cue and cut interest rates significantly in the weeks ahead. The small repo rate cut was to discourage banks from putting liquidity back into RBI. Ficci also hopes that RBI will help in bringing the consumer back to the market by offering interest subvention in housing, automobiles and white goods so that common consumer can afford these products.
According to Sajjan Jindal, president, Assocham, 50 basis point cut in repo rate and reverse repo rate is enough at this juncture and beyond that industry should not demand. India Inc has been asking for a rate cut of 50 basis point for some time now, a demand reiterated most vociferously when the rate cuts were not announced during the post Budget announcement of service tax cuts.
The Financial Express, March 5, 2009, Page 2
fe Bureau, Mumbai, New Delhi
India Inc on Wednesday welcomed the Reserve Bank of India’s move on rate cuts as it believed that it will contribute to the positive sentiments in the current downturn scenario. After market hours, the Reserve Bank of India said it was lowering the repo rate, at which it lends to banks, to 5% from 5.5%, effective immediately. It also cut the reverse repo rate, at which absorbs excess cash from the banking system, to 3.5% from 4.0%, effective immediately, it said in statement.
Ganesh Natarajan-chairman, Nasscom & CEO, Zensar Technologies said, “The steps taken by Reserve Bank of India will boost the domestic IT market. It will improve the demand environment, and such a move will perk up the demand situation and people will be more likely to spend. This move will have a positive impact on the Indian industry as a whole.”
Meanwhile, the apex chambers have said that the repo rate cut will signal the Indian banking sector to cut their interest rates which will in turn help in bring back the consumer to the market.
Chandrajit Banerjee, director general, Confederation of Indian Industry said that the RBI’s decision to reduce the repo and reverse repo by 50 basis points is a welcome move and the industry has been expecting it. He further said that this would induce banks to look at their lending rates and also act as an enabler to lend rather than parking funds in government deposits. CII expects that this would help create credit availability for the industry and also lower the cost of credit.
Ficci, however, said it is waiting for a composite monetary stimulation package. It expects reverse repo rate at 3% and a further cut in repo rate.
Harsh Pati Singhania, president, Ficci said that by cutting the repo rate, the Reserve Bank has signaled to the Indian banking sector to cut their interest rate to consumers and producers alike. Ficci has urged the banks to take this cue and cut interest rates significantly in the weeks ahead. The small repo rate cut was to discourage banks from putting liquidity back into RBI. Ficci also hopes that RBI will help in bringing the consumer back to the market by offering interest subvention in housing, automobiles and white goods so that common consumer can afford these products.
According to Sajjan Jindal, president, Assocham, 50 basis point cut in repo rate and reverse repo rate is enough at this juncture and beyond that industry should not demand. India Inc has been asking for a rate cut of 50 basis point for some time now, a demand reiterated most vociferously when the rate cuts were not announced during the post Budget announcement of service tax cuts.
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