The Reserve Bank of India (RBI) today reduced policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75% to 7.5% with immediate effect. The central bank kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL).

Hariprakash Pandey, vice-president, Finance and Investor Relations, HDIL said, "This is a welcome move by RBI and is set to benefit the entire real estate sector. A rate cut would help in bringing down the mortgage rates and at the same time secure more working capital. The impact on borrowing cost is also encouraging as a 50 bps reduction in borrowing cost can reduce the interest cost substantially by 10%."

"Going ahead we expect more such meaningful rate cuts as this would have a widespread positive impact on the sector and help in growth augmentation," Pandey added.

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