homereal estate NewsRBI's measures will boost infrastructure sector, says Yashpal Gupta of Repco Home Finance
RBI's measures will boost infrastructure sector, says Yashpal Gupta of Repco Home Finance
Reserve Bank of India's Monetary Policy Committee on Thursday decided not to downgrade any commercial real estate loan if a project gets delayed with a valid reason.
RBI's relief from non-performing assets (NPAs) classification for delayed real estate commercial projects for a year is a much-needed measure and it will boost the sector, said Yashpal Gupta, MD and CEO of Repco Home Finance.
Reserve Bank of India's Monetary Policy Committee on Thursday decided not to downgrade any commercial real estate loan if a project gets delayed with a valid reason.
“As far as our exposure to commercial real estate is concerned, that is zero but many of our customers have booked flats in those projects and because of delays they are not able to repay in time. So, hopefully that will also affect the individual loans and that will reduce the NPA,” Gupta told CNBC-TV18.
“Hopefully it will result in boosting the infrastructure sector and banks will give additional loans that will boost demand,” he said.
On extension of micro, small and medium enterprises (MSME) restructuring scheme, Gupta said it will not have any direct impact on the company and that will be credit-positive overall.
The measure will improve liquidity situation for the non-banking financial companies (NBFCs), housing finance companies (HFCs), and banks would be willing to give higher loans because their NPA will go down and their capital interest will be better.
“These measures will have an indirect effect on the entire sector including our company,” he further added.
First Published: Feb 6, 2020 2:40 PM IST
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