“The Budget emphasizes on a bottom-ups approach to reignite growth.  Allowing banks to issue long term bonds without recourse to statutory pre-emption (CRR/SLR) for financing infrastructure is a positive step. Allowing infrastructure loans to be given for longer periods matching the life of the asset (25X4 structure) is a big positive. It will prevent undue stress in repayment of infrastructure loans and will also reduce user charges. Bank consolidation in a time bound manner is a welcome move. The Budget will see an increase in the flow of bank credit for a wide range of sectors including retail, infrastructure, MSME, agriculture, manufacturing and exports. Setting up a fund for providing equity to MSME sector is a positive as also revising the definition of MSME. Setting up of 6 more DRTs is expected to help banks in recovering dues particularly when asset quality is the number one priority of banks.  Increasing the limits on section 80C from Rs 1 lakh to Rs 1.5 lakh will also provide a boost to financial savings”.

Source: Lokesh Shastri