Monday, 3 May 2021

RBI Monetary Policy Quote From Our Clients

“RBI’s MPC expectedly stood pat on policy rates and reiterated accommodative stance as long as necessary to ensure economic activities are fully supported for durable recovery despite second wave of Covid-19 cases. The central bank retaining its 10.5% GDP growth forecast for FY22 shows faith in contribution to economic revival by key sectors and its liquidity measures along with bank lending to NBFCs being extended till September 30, 2021 is an acknowledgement of the systematically important role NBFCs have played in lending to the last mile. We remain steadfast and true to our promise of 

‘Containing fresh infections and boosting vaccinations are the 2 important steps to counter the socio-economic fallout of the pandemic. The pace of vaccination drive must be increased many folds and should cover younger population too. 


By keeping the repo rates unchanged, RBI has maintained an accommodative stance. The RBI Governor’s assurance to provide adequate credit by ensuring ample liquidity & announcement of Rs 10,000 Cr addl. liquidity to NHB must be passed onto the real estate  as the sector has been struggling to source funds for projects.


Real Estate sector is one of the key drivers of the economy and needs multi-faceted support from the Central bank and the Government to recover and bounce back to pre-COVID levels.’

Shriram Transport Finance

Please find below monetary policy views of  Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance.

“RBI’s first monetary policy of FY22 was on expected lines with rates unchanged and accommodative stance retained. The Governor’s underlying commentary was dovish with continued priority on supporting economic revival measures through ample liquidity to all productive sectors. Recognising the key role played by NBFCs in making credit available to the last mile, on tap TLTROs and bank lending to registered NBFCs for on lending to priority sector has been extended by 6 months to September 30, 2021 and this will be particularly useful in supporting & nurturing financial needs of rural economy and semi-urban businesses, micro/small/individual operated businesses amid the current Covid-19 protocols.

ICICI Securities

Views of Ms. Anagha Deodhar – Chief Economist, 

ICICI Securities on the RBI Monetary policy




The MPC’s decision to pause and maintain accommodative stance is along expected lines. However, it retained GDP growth projections for FY22 at 10.5% despite large stimulus in other countries and its potential impact on global growth. In this policy, the biggest announcement was GSAP 1.0 under which the RBI plans to buy government securities worth Rs 1trn in Q1FY22. Along with GSAP, the RBI also announced extension of several liquidity facilities. Together, these measures are aimed at keeping financial conditions benign, ensure orderly evolution of the yield curve and supporting the nascent recovery.

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