Realty developers disappointed with RBI policy
Mumbai, Oct 30 (UNI)
Real estate developers, who are battling low home sales and high cost of capital, were disappointed over holding of rates by Reserve Bank of India in its Monetary policy for 2012-13.
The Reserve Bank of India has cut cash reserve ratio by 25 basis points while keeping the key rates unchanged.
In a reaction to RBI's move, Rajeev Talwar, executive director, DLF Ltd said, " The cut in CRR will release Rs 17,500 crore into the system. It will fuel inflationary tendencies in the system.
It will release more money into the system but better will be lowering of rates." There is little disappointment. Let us hope for the best in the next policy, Mr Talwar said.
CREDAI, National President Mr. Lalit Kumar Jain, has expressed strong disappointment at the RBI's credit policy. The RBI should shed its negative approach towards the Real Estate industry.
Developers apex body said its statement that the cost of funding of Real Estate is very high and the home buyers as well as developers expect the RBI to come out with positive policy and facilitate drastic reduction in interest rate.
"We are thoroughly disappointed with this stingy approach of the RBI. We have also given representation to RBI and we wish they consider it seriously", he said.