Describing the interim Budget presented on Monday as a practical one, Federal Bank managing director Shyam Srinivasan has said that interest rates might fall in the near future as a result of the Budget announcements.
“Efforts to contain fiscal deficit and current account deficit are encouraging. Lower government borrowing is likely to ease pressure on resources and would free resources for investment by the industry and might ease pressure on interest rates. The burden on students who had availed of education loans on or before March 31, 2009, has been removed, as the government has set aside about `2,600 crore to take over liability for outstanding interest for the period till December 31, 2013. This will benefit students were not covered under the interest subsidy scheme that was introduced for loans disbursed on or after April 1, 2009, and help reduce NPAs in select segments of education loans,” Shyam Srinivasan said.
Commenting on the budget, A A Abdul Azeez, President, Indian Chamber of Commerce and Industry, lauded the move to accept the long-standing demand of ex-servicemen for ‘one-rank, one-pension’.
“Increase of the Centre’s share to the state is a small relief. The large allocation to Nirbhaya Fund and food security appears to be good. But barring the `462.17 crore allocation to Kochi metro rail, there is nothing much to cheer about,” he said.