Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on monetary policy
RBI reiterated its accommodative stance to continue for as long as necessary while keeping rates unchanged, as broadly expected. The focus has been on easing financial conditions, keeping liquidity very comfortable in the system and reducing the cost of money through on-tap Rs. 1 lakh crore TLTROs and OMOs in state development loans.
Sectors of economy like FMCG, agriculture, autos and warehousing among others have been more resilient than others in Q2 and this augurs well for transport industry that ensures last mile connectivity. RBI’s policy measures will have a positive impact for those engaged in last mile lending as rural & semi-urban economy is continuing to show strong recovery.”