India Inc welcomes RBI's rate cut, says will revive demand in auto, realty

Falling rates to help; rise in group exposure limits will support large companies

The CEOs of top Indian companies expect the 40-basis point rate cut announced by the Reserve Bank of India (RBI) on Friday to help spur demand and revive sales, which have crashed to near zero in the last two months because of the nationwide lockdown to control the spread of coronavirus. The two worst-hit sectors — automobiles and real estate — will benefit the most from the 115-basis point cut in rates since March, they said.

The RBI’s move to allow commercial banks to raise their group exposure limit from 25 per cent to 30 per cent will enable greater