ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • AMC Sector: Growth-oriented funds lead the strong inflows in sector, says BK Securities – check key triggers
  • Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang
  • Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here
  • Finance Ministry empanels 12 transaction advisers for assisting in implementation of Public Private Partnership projects
  • Stock market on Monday: Market may continue its volatile trade, believes Anil Singhvi - crude, rupee movement key monitorable
Read in App
Business News » India News

Credit Policy: What captains of commerce are demanding from policymakers for structural growth

Captains of the Indian economy have demanded from the policymakers to create symmetry between the structural growth and liquidity system.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Credit Policy: What captains of commerce are demanding from policymakers for structural growth
A review of the liquidity framework is a welcome move and should aid monetary transmission and easing of the leverage ratio requirement will boost bank lending. Photo: PTI

In a bid to provide impetus to the counter growth and investment headwinds through aid to the monetary transmission that the Reserve Bank of India (RBI) has been providing since February 2019 by cutting the key rates, captains of the Indian economy have demanded from the policymakers to create symmetry between the structural growth and liquidity system. They are of the opinion that easing of the leverage ratio requirement will boost bank lending and should serve as the much needed countercyclical stimulus.

Zarin Daruwala, CEO, Standard Chartered Bank, India said, “The combination of the repo rate cut, the change to an accommodative stance and the resolve to provide adequate liquidity, will provide the impetus to counter growth and investment headwinds. A review of the liquidity framework is a welcome move and should aid monetary transmission. Additionally, the easing of the leverage ratio requirement will boost bank lending and should serve as the much needed countercyclical stimulus.”

Niranjan Hiranandani, President, NAREDCO said, “Liquidity is very low as the borrowing cost is still very high. This liquidity crisis is taking a toll on the health of the companies and further inflicting financial damage thereby affecting the credit rating of companies and industries. Unless things are passed down, the NPAs of the banks would pile up in the near future.” He said that when the Lehman crisis took place in 2008, the Reserve Bank of India (RBI) helped the banks to tide over the crisis by coming out with a one- time rollover option. We expected a similar solution to the problem faced by the Industry.

Gaurav Gupta, Co-Founder & CEO, Myloancare.in said, "It is important to note that the transmission of even the first two cuts has been minimal for retail borrowers. In fact, most leading banks have taken a slight increase in the home loan and personal loan rates over the last three months. There are structural issues (both liquidity and asset quality) emanating from NBFC liquidity crisis, which seem to be spilling over to debt mutual funds and these severely restrict the ability of banks to pass on policy rate cuts to the consumers. The industrial slowdown has its origin in real estate and infrastructure crisis and a rate cut, while helpful, will have to be combined with a policy intervention to revive the real estate and infrastructure sectors.  It may be a while before the rate cut makes its way to the end borrowers.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Indian economyBankingReserve Bank of IndiaRBI Credit Policybank lending
Written By: Asit Manohar
Updated: Fri, Jun 07, 2019
01:07 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Crisil cuts FY23 GDP growth estimate to 7.3% Crisil cuts FY23 GDP growth estimate to 7.3%
Rupee hits record low of 79.11 against US dollar in early trade Rupee hits record low of 79.11 against US dollar in early trade
PM Modi inaugurates 'Raising & Accelerating MSME Performance' scheme PM Modi inaugurates 'Raising & Accelerating MSME Performance' scheme
47th GST Council Meeting Outcome News: All you need to know about result of Chandigarh meet 47th GST Council Meeting Outcome News: All you need to know about result of Chandigarh meet
GST on online gaming, casinos, horse racing - They may be taxed like this! What Group of Ministers recommended? GST on online gaming, casinos, horse racing - They may be taxed like this! What Group of Ministers recommended?

LATEST NEWS

AMC Sector: Growth-oriented funds lead the strong inflows, says BK Securities – check key triggers

Gold Price Today: Investors with short term view must book profits now; import duty hike, rupee weakness may arrest price correction, temporarily

ED provisionally attaches Rs 96 crore assets of TRS MP promoted Madhucon Group

Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here

Rakesh Jhunjhunwala Stocks: Agrochemical firm Rallis India shares may surge by 23% despite pressure on margins – Here’s why?

Cigarette makers shifted to biodegradable overwrap on packets, well ahead of plastic ban

Two-wheeler maker Hero MotoCorp sales up 3% in June at 4,84,867 units

Finance Ministry empanels 12 transaction advisers for assisting in implementation of Public Private Partnership projects

India moves to leadership position in large-value digital payment system, RBI report

Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang -

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV