Mr. Atul Banshal, President- Finance and Accounts, M3M
Developer M3M's Quote on the SBI rate cut
“The much-awaited rate cuts are expected to boost the sentiments dampened by the govt’s demonetization move and trigger consumption demand in a big way. Banks have substantial quantum of low cost funds and the reduction in the MCLR is expected to positively impact loan growth both in the retail consumer segment and in corporate sector lending, thereby supporting growth.
The rate cuts will give boost to retail credit. This will be most visible on the home loan portfolio. Home loan rates are now at their lowest levels for several years. Lower home loans could see the fortunes of the sector picking up, especially in the affordable housing segment. The rate cut will immediately benefit new home-loan borrowers. SBI's decision could force other banks and housing mortgage financiers to lower their lending rates. The decision to purchase a residential property is taken after a lot of planning. Many have been putting off a decision in anticipation of lower interest rates. This cut may expedite that decision. This is a welcome and well-thought out return to conventional monetary and fiscal policy.”
Mr. Atul Banshal, President- Finance and Accounts, M3M.
