Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited on RBI's Credit Policy

Commenting on the credit policy review, Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited, said: "With the Reserve Bank raising the repo rate and reverse repo rate by 25 basis points to 6.25% and 5.25% respectively, borrowing rates will go up for consumers as well as for developers. However, the move is in line with our expectation that inflation remains a matter of concern for the federal bank and it was obvious that the RBI would be increasing the repo and reverse repo rate to check the rising prices."

"To forecast the impact of credit policy on real estate industry, one needs to go into the details. I would say that the overall policy is designed to check the creation of pricing bubble in the market. The loan value restriction has been brought down to 80% which will certainly check flow of fund in market thereby giving bankers an option not to increase the loan rates. Yes, teaser loans may be removed. The move of RBI will not have any impact on demands as demand is directly related to economic development and our economy is growing and sentiments are positive. What is required is to increase supply to curb inflation. With adequate supplies in the markets for all kind of buyers, I am confident that we will not see any impact in our sales in near terms." Mr. Jain further adds.

Source : Equity Bulls

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