According to State Bank of India chairman Rajnish Kumar, the measures announced by the Indian Reserve Bank including a reduction in the repo rate and an extension of a moratorium on term loans for another three months will help in the rapid revival of the economy.
The RBI cut repo rate on Friday by 40 basis points to 4 per cent.
The central bank extended the moratorium period for repaying loans by another three months until August 31, 2020, as well as rising corporate bank exposure to 30% of the net worth of the group from the current 25% cap.
“The entire effort of the government and the RBI is to revive economic growth while at the same time recognizing the difficulties facing industries. All measures to reduce the repo rate, moratorium and increase the group exposure limit will help to revive the economy,” Kumar told reporters on Friday through a video call.