JLL REACTION TO RBI’S ANNOUNCEMENT ON APRIL 17TH, 2020 attributed to RAMESH NAIR, CEO AND COUNTRY HE AD, JLL INDIA

RAMESH NAIR, CEO AND COUNTRY HEAD, JLL INDIA

“The steps undertaken by the Reserve Bank of India to ease the liquidity concern of Banks, NBFCs and other financial intermediaries is an acknowledgement of the liquidity issues faced by the financial system of the country as well as the industry.

Today’s announcement will give an initial fillip to the real estate sector. The Central Bank’s focus to provide credit flow to NBFCs is a key step. This will provide a boost to various real estate activities.

As per the latest data by RBI, NBFCs outstanding credit to the commercial real estate stood at INR 1,29,359 crore as of end September 2019. The relaxation of NPA classification norms and extension of one year for commencement of projects to real estate developers by NBFCs will provide the much needed relief to the sector.

The refinance facility to the extent of INR 10,000 crore to NHB is a welcome move to provide the much needed liquidity to Housing Finance Companies.”