Expecting the credit line crisis, which has taken grip into the entire non-banking financial companies, especially after the IL&FS Crisis, the NBFCs have hailed RBI's Repo Rate cut decision and expect that it would help government to address the liquidity crisis and retail bankers would now be able to provide the credit line with the surplus amount they would have in their corpus.

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Speaking on the matter Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The first rate cut in the newly elected government’s regime is certainly a welcome step.  The benefit of the lower policy rate in terms of better credit cost as well as higher liquidity will hopefully be transmitted further by banks to NBFCs as well. Also, the change in policy stance from neutral to accommodative is a welcome shift as it lays the ground for further rate cuts. The cash-crunched NBFCs will definitely benefit from the inflow of capital which will, in turn, benefit developers as well as home-buyers. NBFCs have been facing a liquidity crisis and this has negatively impacted their loans to real estate, including construction finance. Besides capital infusion into this important financier segment, this rate cut will also improve the home-buyers affordability and stimulate housing demand at this critical juncture.”

Amar Ambani, President & Research Head, YES Securities said, "In a fairly Dovish policy, the RBI, as we anticipated, not only reduced the Repo rate by 25 basis points but also changed its policy stance to accommodative, from neutral. More importantly, the RBI has addressed the liquidity crisis in the system with open market operations, turning LAF into surplus in the early days of June 2019. It has assured of liquidity support as and when needed. We have factored in another 25-basis point Repo cut in the year 2019 itself."

Garima Kapoor, Economist, Elara Capital said, "Drawing comfort from consistent softness in inflation trajectory, MPC cut policy repo rate for the third time this year to support benign growth conditions. A shift in the stance to accommodative is welcome as it will pave way for transmission to lending rates, which so far have been inadequate. We expect MPC to cut rates by an additional 50 bps through the year while continuing to fine-tune liquidity support through a combination of OMO purchases, forex swap and CRR cut."

Kanika Gupta Shori, Co-Founder and COO, Square Yards said, "Today’s Rate Cut by the RBI is a much-needed response to the subdued demand and global uncertainties that the Economy is currently facing. " She said that liquidity has become a major issue in the market and RBI has come forward at the right time. Now it's for the retail bankers to pass on its benefits and provide ample money into the market and help the Indian government to control the sluggishness taking grip into the markets.

The Reserve Bank of India on June 6 reduced the Repo Rate by 25 bps to 5.75 for the third successive time. In February and April 2019, the RBI Governor led MPC has already cut Repo Rate by 25 bps bringing it down to 6 per cent from 5.5 per cent.