Home / Knowledge / News / 'Repo rate could have been pruned further' - President, FICCI
'Repo rate could have been pruned further' - President, FICCI
21
Apr '09
Welcoming the reduction by the Reserve Bank in the repo rate and the reverse repo rate by 25 basis points in its annual credit and monetary policy statement for 2009-10, Mr. Harsh Pati Singhania, President, FICCI said “The cut in the repo rate could have been steeper because of the strong cushion provided by the extremely comfortable position with regard to inflation”.

Mr. Singhania said FICCI was also hoping for a cap by the RBI in the reverse repo rate to encourage banks to keep sufficient amount of funds with themselves for keeping the credit disbursal pipeline running unimpeded.

FICCI reiterates the need for a downward revision of the PLR of banks in line with the RBI policy rate movement. As mentioned in FICCI's recent Business Confidence Survey, the PLR of banks has reduced merely by 125 basis points as against a fall of 400 basis points in the repo rate.

The RBI has kept the CRR rate unchanged at 5%. In the interest of keeping the credit flow going, FICCI feels that the CRR could have been pruned further by 100 basis points.

FICCI has also hailed the announcement on deferring the application of Capital Risk-Weighted Assets Ratio (CRAR) of 12 per cent to NBFCs. This is a very welcome gesture as in the current scenario.

It would have been extremely difficult for these entities to raise additional resources. NBFCs are backbone of the system and major providers of risk capital to SMEs and they certainly need the right policy environment to continue playing a constructive role in economic development.

The Chamber has also welcomed the move to enhance the buy\back limit of FCCBs from current level of $ US 50 million to $ US 100 million. In the current environment this would help companies with internal accruals to manage their fund flow appropriately.

Federation of Indian Chambers of Commerce and Industry

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search