Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details

Union Budget 2021: Finance Miniser Nirmala Sitharaman has presented her budget 2021 and various sectors are busy analysing its impact on them.

Banking sector also welcomes the budget 2021 for asset monetisation by adopting disinvestment process for the sick unit like Air India.

Union Budget 2021: Finance Miniser Nirmala Sitharaman has presented her budget 2021 and various sectors are busy analysing its impact on them. While stock market cheer Sitharaman's disinvestment and other proposals to infuse money in India Inc, banking sector also welcomes the budget 2021 for asset monetisation by adopting disinvestment process for the sick unit like Air India. They also hailed the budget for recognizing SMEs and MSMEs as engines of revival post-COVID-19 pandemic.

Abheek Barua, Chief Economist, HDFC Bank said, "The focus has been on increasing capital expenditure both by the centre (+35% y-o-y) as well as states. Moreover, the budget introduced new institutional structures (like the Development Finance Institution, asset reconstruction company) and provided greater detail on asset monetisation (disinvestment) to finance infrastructure needs in the economy."

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Surojit Shome, Managing Director and CEO – DBS Bank India said, "The Union Budget proposals for FY 21-22 outline several landmark proposals on much-needed reforms to fund a strong growth oriented multi-year program of capex-led recovery post a black swan event. It is encouraging to see the FM target policy reforms and boost capital infusion into the infrastructure, SME and start-up sectors recognising them as engines of growth in the post-pandemic revival. The thrust on digital payments, e-resolution of tax related disputes and the first virtual census also underlines the Government’s focus and continued thrust on digital infrastructure.”

Zarin Daruwala, Cluster CEO, India and South Asia markets — Bangladesh, Sri Lanka and Nepal said Standard Chartered Bank, said, “The fiscal impulse provided with a revised deficit roadmap signals a clear shift in the policy strategy and is significantly positive, in my view. The focus on capex (2.5 per cent of GDP, highest in more than 15 years), with push towards high growth multiplier sectors (physical, social infra) bodes very well for the long-term growth potential, though execution is key. More importantly, landmark reform announcements in the financial sector (creation of DFI, AMC & ARC, privatisation of 2 banks, FDI limit hike in insurance, tax holiday for foreign banks in IFSC) would provide a strong boost to the economy. The emphasis on a supportive and transparent tax structure, with tax changes intended to attract foreign flows and channelise domestic savings towards the financial sector are steps in the right direction. I strongly believe that the focus on privatisation, disinvestment and recycling of assets through infra debt funds / REITs / InVITs is also positive and would help generate policy space to stimulate the economy.”

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