Views on Credit Policy - Sudip Bandyopadhyay - CEO, MD Destimoney Securities

A bold and positive action from RBI to address the growth concerns in the economy. 50-bps cut in repo rate should cheer the market and improve the sentiments.

Apart from possible increase in NIMs, expected rejuvenation of economic activity should decrease NPAs and possibility of fresh NPAs, benefiting the financial services sector of the economy. Overall credit demand should increase and the expected lowering the cost of funds should help the industry. Long stalled Capital Formation should hopefully restart.

Keeping the liquidity management tools ( CRR, SLR and OMOs) outside of credit policy purview also makes sense as the same can be exercised separately depending on the market requirements from time to time.

Source : Equity Bulls

Keywords