Mr. Soumitra Majumdar, Partner, JSA
“RBI’s monetary policy statement do significantly allay fears of economic slowdowns in India. The Indian economy should be able to weather several risks and geo-political tensions plaguing several developed economies and prove to be a stable and consistent investment destination. Though showing positive trends, however, inflation continues to remain the centre of RBI’ attention. Cleaner balance sheets of banks and corporates coupled with the liquidity holds promise of larger capital expenditure by both the public and private sectors. Bank’s ability to fix their inter- institutional borrowing limits testifies the sectoral strength. The proposed amendments to the stressed assets resolution circular of June 7, 2019 for including specific guidelines for compromises and settlements with borrowers, is definitely a welcome move. This will help expediting closure of settlement proposals under a certain regulatory framework – promising further cleansing of bank and corporate books, with renewed focus on further credit and business growth. Regulations for restructuring borrower accounts hit by natural calamities is again a positive move for the economy. Thrust on developing and securing the digital lending ecosystem also holds promise for credit penetration and demand- driven growth.”
