Real estate players asked for reduction in lending rates by banks after the Reserve Bank of India (RBI) slashed key interest rates in the second bi-monthly monetary policy review. As per expectations, repo and reverse repo rate reduced by 25 basis points. Revised repo and reverse repo rate stood at 7.25% and 6.25% respectively as compared with 7.50% and 6.50% earlier. On the other hand, the central bank has kept cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4% and 21.5% respectively.

Commenting on the monetary policy, Pradeep Jain, chairman, Parsvnath Developers said, 'We welcome the rate cut by RBI. We were expecting the move considering the realty sector has been struggling since last few quarters with increasing inventories and low demands. We hope that more banks will now pass on the benefit to customers thereby stimulating the overall demand. Such liberal moves coupled with policy reforms are necessary for the revival of the real estate sector in our country.'

Hariprakash Pandey, Sr. Vice-President, Finance and Investor Relations, HDIL said, 'Today's repo rate cut of 25bps by RBI was in line with industry expectations. The industry was seeking easing of the monetary policy to create enabling conditions for a fuller government policy thrust that hinges around  a step up in public investment in several areas that can also crowd in private investment.

We hope that this rate cut will be replicated by the banks by reducing interest rates making home loans more consumer friendly. It will not only accelerate demand for housing, but will boost manufacturing and ancillary industries too.'