Modi Government’s 2.0 budget has given thrust in Public banking sector by infusing Rs70,000cr. The fundamentally sound NBFCs gets fresh line of liquidity as government provides credit guarantee to PSUs funding the NBFCs. This step will provide necessary comfort to the banks. Also, the exemption of Debt Redemption Reserve (DRR) of public issues is a positive step thereby increasing the liquidity in the system.
Government’s continuous focus on infrastructure with the announcement of investing Rs100 lakh cr over the next five years will boost the transport sector. According to us, the only dampener is the increase in diesel and petrol prices.
-Umesh Revankar, MD and CEO - Shriram Transport Finance Ltd