Short-Term Problems Not Addressed, Say Corporates

SUBODH BHARGAVA

Chairman, Eicher group

While the Reserve Bank of India's efforts to address the issues of banking reforms is a welcome step, there is hardly any measure suggested in the policy to address the problems related to the corporate sector and increasing flow of funds to industry. On this count, it is disappointing.

Since the industrial growth in the current fiscal is estimated to be in the range of only 3-4 per cent, the Central bank should have addressed the issues plaguing the domestic industry and initiated some favourable steps including a 1-2 per cent reduction in the interest rate.

SHANTI EKAMBARAM

Head of Fixed Income Securities Group, Kotak Mahindra Capital Company:

The thrust of the credit policy is on structural reforms. The banking reforms are welcome, particularly regarding income recognition, asset classification and provisioning. The policy has focused on structural issues and a review of the economic situation.

A lot of coverage has been given to the problems that could emerge out of fiscal slippage and monetisation. Any slippage would necessitate the revising monetary tools.

The RBI has recognised the need for a vibrant and liquid money market. The introduction of uniform pricing for 91-day treasury bills should create an active market.

RAUNAQ SINGH

Chairman, Raunaq Enterprises

What is the use of this policy? We are very concerned with the way things are right now. Already so many companies are going in for liquidation. More companies will become sick unless drastic steps are taken to revive the economy. I was hoping for a liberal monetary policy that would boost credit offtake by trade and industry from the banking sector. Banks are flushed with funds, but something should be done to make them lend it.