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RBI to Reduce Interest Rate Seems to Help in Improving the Health of Debt Ridden Companies

News: 

State-run Power Finance Corporation has offered to buyback the infrastructure bonds it had sold in 2011 to reduce fund cost as interest rates are expected to ease further with Reserve Bank of India reiterating its softer accommodative monetary policy stance.
Source: ET

SNP Insight:

RBI move of reducing the interest rate approximately below 8.3% is a strategic move to increase the soft money in the market. This may increase the demand for loan and hence there may be more potential for investment. The impact of this initiative seems to favour the debt ridden companies to source softer loans thereby easing the cost of debt.
Source: SNP Infra Research