Comments of Mr. Shyam Srinivasan, MD & CEO, Federal Bank, on RBI’s Monetary Policy

The policy announcement was along expected lines both in content and the underlying tone, which suggested an accommodative stance in the period ahead (even outside of policy review cycle), should data flow suggest continued easing up of inflation.

Further the likely announcement regarding the extension of the 5:25 formula for existing projects points to the fact that there is focus on creating enablers for easing up of business conduct and lubricating the system, thereby stimulate credit flows and industrial activity.