{"id":13729,"date":"2020-08-10T11:10:54","date_gmt":"2020-08-10T11:10:54","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=13729"},"modified":"2020-08-10T11:10:54","modified_gmt":"2020-08-10T11:10:54","slug":"bankers-call-rbi-pause-a-prudent-step-hail-regulatory-moves","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=13729","title":{"rendered":"Bankers call RBI pause a prudent step, hail regulatory moves"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2044811 size-large\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-112-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2044811 size-large\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-112-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2044811 size-large\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-112-620x413.jpg\" alt=\"\" width=\"620\" height=\"413\" srcset=\"https:\/\/images.financialexpress.com\/2020\/08\/1-112-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/08\/1-112-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/08\/1-112-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/08\/1-112-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/08\/1-112-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/08\/1-112-313x209.jpg 313w, https:\/\/images.financialexpress.com\/2020\/08\/1-112.jpg 660w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a> paused after two deep cuts as the inflation rose beyond the upper end of its target band for July, and the real interest rates the differential between inflation and lending rates turned negative.<\/span><\/figure>\n<\/div>\n<p>The status quo by the Reserve Bank was termed as a \u201cprudent step\u201d by the lending community, but measures on the regulatory front like restructuring and increase in lending against gold were welcomed. Rajnish Kumar, chairman of <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">SBI<\/a>, who also heads the Indian Banks\u2019 Association, said the outlook on growth \u201ccontinues to be negative\u201d and pointed out that the RBI has refrained from giving a number on the contraction of the economy, while inflation trajectory is \u201cuncertain\u201d.<\/p>\n<p>The RBI paused after two deep cuts as the inflation rose beyond the upper end of its target band for July, and the real interest rates the differential between inflation and lending rates turned negative. It maintained the accommodative stance and promised to act the moment inflation ebbs. \u201cThe decision to hold the policy rate is a prudent one in the prevailing circumstances as the trajectory of economic growth, inflation and external demand continues to remain uncertain,\u201d Kumar said in a statement.<\/p>\n<p>\u201cThe RBI has addressed the need to offer some form of restructuring facility for standard accounts that are facing difficulty in debt restructuring. We welcome the fact that a new Resolution Framework for COVID-19-related stress facility has been extended to large corporate, SME and personal loans with necessary safeguards in each segment,\u201d he added.<\/p>\n<p>Bank of India\u2019s managing director and chief executive A K Das said the RBI policy has \u201cseveral positive\u201d measures which will help in financial stability, including additional liquidity of Rs 10,000 crore to the National Bank for Agriculture and Rural Development (NABARD) and the National Housing Bank (NHB) towards directed lending to NBFC and HFC, extension of timeline of MSME restructuring, and incentive scheme for priority sector lending.<\/p>\n<p>Peer <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/indian-bank-stock-price\/\" rel=\"noopener noreferrer\">Indian Bank<\/a>\u2019s managing director and chief executive Padmaja Chunduru termed the monetary policy committee\u2019s call as pragmatic as the accommodative stance has been maintained.\u00a0 Kumar said at present, the demand shock is appearing to net out the supply shock on the price levels front.<\/p>\n<p>Private sector lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/kotak-mahindra-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Kotak Mahindra Bank<\/a>\u2019s group president Shanti Ekambaram said the policy was on expected lines and welcomed the much-awaited restructuring scheme for the MSME sector, saying it will provide additional relief to a sector deeply impacted by the COVID-19 pandemic.<\/p>\n<p>Non-bank lender Shriram Transport Finance\u2019s managing director and chief executive Umesh Revankar welcomed the move to end moratorium and instead go for a case specific restructuring. \u201cThe central bank has decided not to extend the moratorium and has instead allowed lenders to restructure some loans which is a positive change as account classification will remain standard and this will also ease provision requirements ahead,\u201d he said.<\/p>\n<p>Among the foreign lenders, Standard Chartered Bank\u2019s Zarin Daruwala said the policy move to take a pause was on expected lines. \u201cThe market will take comfort that it has left the door open for further easing given COVID-19 related uncertainties. The resolution framework should help reduce the strain on the balance sheets of corporates operating in affected sectors in a meaningful way and the revised priority sector lending norms should improve funds flow to credit-starved districts,\u201d she said.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/bankers-call-rbi-pause-a-prudent-step-hail-regulatory-moves\/2047141\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The RBI paused after two deep cuts as the inflation rose beyond the upper end of its target band for July, and the real interest rates the differential between inflation and lending rates turned negative. The status quo by the Reserve Bank was termed as a \u201cprudent step\u201d by the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13730,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-13729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/1-112.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/13729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13729"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/13729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/13730"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}