Views of Mr. Umesh Revankar, MD, Shriram Transport Finance Company on RBI policy review

Views of Mr. Umesh Revankar, MD, Shriram Transport Finance Company

"RBI has maintained a status quo in its first bi-monthly review, which is much in line with the general consensus. It is quite commendable to hold the rates considering the fact that the RBI's policy has always revolved around containing inflation. This indicates that RBI is confident of reigning in on inflation in the long term, while the rate hikes done earlier are expected to show its lag effect. We expect RBI to maintain similar stance in the coming policy review as well.

However, from an industrial growth perspective, we hope the RBI starts reducing rates post H1FY15 onwards, which will provide much needed impetus to the small scale industries by lowering their cost of funds, improving their margins and profitability."

Source : Equity Bulls

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