Bankers and financial experts have hailed RBI’s policy announcement, saying the decision to keep the key repo rate unchanged is an accommodative approach to manage inflation while keeping growth as target. Newly appointed SBI chairman Dinesh Kumar Khara said the RBI is a perfect exposition of doing ‘whatever it takes’ to revive growth.
Bank of India’s chief executive A K Das said the retail and small business segments will also have better prospects by measures, such as, rationalisation of risk weight for housing loans, enhancement of regulatory retail cap and co-lending with NBFCs.
Punjab National Bank’s MD and CEO S S Mallikarjuna Rao welcomed the targeted long term repo operations worth one lakh crore rupees and said it will support the economic growth.
HDFC Bank’s Chief Economist, Abheek Barua said there is a significant probability of a rate cut in February, if not in December itself as inflation moderates.
Indian Bank’s MD & CEO, Padmaja Chunduru said the RBI’s assurance on maintaining comfortable liquidity conditions will assure the markets, at the same time enable the government to go ahead with its borrowing programme smoothly.
Indian Banks Association’s Deputy chairman Raj Kiran Rai, who also heads Union Bank of India, said the policy signals are tilted more towards augmenting growth momentum in the economy. He added that all the announcements are focused on ensuring liquidity and effective monetary transmission.