RBI decides to cut SLR: Real estate developers and property consultants are happy
RBI (Reserve Bank of India) has decided to cut the statutory liquidity ratio (SLR). This move was welcomed by the real estate developers and property consultants as this would enable the banks to lend more to the industry, including the cash-starved realty sector.
However in order to boost the housing sales, the developers demanded easing of the interest rates. Rs 40,000 crore will be unlocked into the system by this move. RBI decided to keep the key policy rate unchanged but slashed the SLR by 0.5 %.
Mohit Goel the CEO of Omaxe Construction Ltd (a leading real estate developer) stated that the RBI’s move to cut SLR by 50 basis points to 22 % will give banks more headroom to lend. This move is expected to spur lending in the future. Goel also mentioned that the much anticipated cut in rates would have been more appropriate at this juncture.
Sanjay Dutt, the Executive Managing Director- South Asia of property consultant Cushman & Wakefield stated that the reduction in SLR clearly indicates that the central bank is keen on freeing up more money for lending. He expressed his happiness over this move and mentioned that this is a positive move for the realty firms.
Anuj Puri, the Chairman and Country Head of JLL India (Jones Lang LaSalle) stated that the additional funds allocated in the hands of commercial banks through a SLR cut is positive for both infrastructure and realty sectors.
Source- Financial Chronicle
Cushman & Wakefield, JLL India, Property Consultants, Real Estate Developers, Reserve Bank of India, SLR
