Credit Policy Review - Mr. Pradeep Jain, Chairman, Parsvnath Developers and CREDAI

Commenting on RBI's credit policy review, Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited and Chairman, Confederation of Real Estate Developers' Association of India (CREDAI) said, "This was indeed a much awaited step from RBI which came after almost thirteen increases in last two years. A 50 bps cut in Repo Rate, bringing it to 8% is definitely going to boost the liquidity in market thereby clearing the supply side hurdles up to a significant level. As an after effect of the Union budget 2012-13, we were expecting a rate cut by RBI to ease out the liquidity crunch in the market. The revision of Wholesale Price Index inflation to 6.9% during March 2012 quarter from more than 9% during its preceding quarter also gave some liberty to RBI to go for the rate cut.

For the real estate in particular, this is indeed a welcome step by RBI. While the sector was already reeling under the pressures of high interest rates, this will allow banks to lower down the interest rates significantly. Both buyers and developers shall get benefitted from this. Also, RBI has removed prepayment penalty clause which is definitely going to cheer sentiments of buyers across sector. As a developer we foresee some better results ahead and thank RBI for considering the real issues of liquidity to this sector."

Source : Equity Bulls

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