Repco does not have a very large exposure to commercial loans. But in general, you have to identify the importance of this move. How will life change for a commercial real estate lender?
First of all, we have zero exposure to commercial real estate but this move is definitely positive. One, it changes the mood of the economy and the mood of the players. It provides more liquidity to real estate players and as a result, it changes the sentiment. It will hopefully result in moving the blocked inventory in the commercial part.
Some would also argue that the real problem is not in the commercial real estate market, it is in the residential real estate market. The Reserve Bank of India is silent about the housing real estate market.
Yes you are right to that extent, but the Government of India has already announced a fund of Rs 25,000 crore and RBI has only mentioned three sentences in the speech. Probably when they come out a circular, maybe that will also get addressed. We are hoping that will get addressed.
[“source=economictimes”]