Views on RBI Monetary Policy - October 2020 - Aiswarya Ravi, CFO Kinara Capital

"LTRO on tap for banks to be given to specified sectors is a good move but remains to be seen what the eligible sectors are under this scheme. Previously, LTRO/TLTRO funds did not flow down to the lower-rated NBFCs.

Another point to note is that though the window has been opened till March 2021, it is a boon and a bane. A clear deadline is necessary, however, it is so far out, that it creates no urgency for banks to extend the funds in time to serve the post-Covid recovery.

The need of the hour is right now. We are finally past the necessary lockdowns and MSMEs are trying to restart and rebuild their businesses. Specific and clear guidelines on eligibility and a separate carve out for last-mile MSME-focused NBFCs will be the fastest way to economic recovery." Aiswarya Ravi, CFO Kinara Capital.

Source : Equity Bulls

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