View on RBI's stimulus announcement by Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities

RBI's stimulus announcement by Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities:

"The RBI's announcement has correctly focused on the financial sector, specifically the NBFCs. We expect the TLTRO2.0 along with allocations to NHB, SIDBI, NABARD will provide support to the NBFCs/HFCs/MFIs though the extent will depend on the risk appetite of the banks. The lower reverse repo rate should also encourage banks to lend out. However, given the current macro conditions, we need to watch how the banks utilize the various windows and options given by the RBI to assess whether credit growth increases and the extent of support that the NBFC sector gets."

Source : Equity Bulls

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