RBI rate cut: Silver lining for cement cos

RBI rate cut: Silver lining for cement cos

Corporate India has all the reasons to rejoice before the upcoming festive season, as they feel the overall economy is likely to revive as expected, with interest rates on loans expected to come down. Interest costs are expected to decline if the banks reduce their lending rates and pass on the benefit of repo rate cut announced by the Reserve Bank of India to companies and retail customers.

VS Parthasarathy, group CFO at vehicle manufacturer M&M said, ´The cut, the prognosis of lower inflation, and therefore, this indication of an accommodative stance, all provide for enabling and softening the financial market conditions.´

´The phasing of lower SLRs, and the increase in FPI limits to sizable levels over the next 2-3 years are measures which are important for ´Invest in India´ policies. RBI´s fast-paced slew of actions in respect of redefining ECBs and partial credit enhancement point to a regime of parity with international borrowing costs for Indian companies,´ he added.

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