Comments on Monetary policy of April 1 2014 from Mr. V Vaidyanathan, Capital First

“The RBI is signalling that they are yet uncomfortable with inflation and as expected, there was no change in policy rates. The RBI have instead shifted focus on the Forex and make it more friendly for FIIs.”

“I feel the focus needs to shift from interest rates to liquidity in the interim. Many participants are accessing the MSF at 9% from the RBI and the market borrowing from the RBI under all facilities, including MSF, Repo, and LAF is over Rs. 1.5 lac crore, for effective transmission of policy rates. But over the next few months, we hope the rates move down a bit, even if for signalling purpose, to improve the sentiment for growth.”

Capital First Limited (CFL) is a systemically important non deposit taking NBFC focused on financing MSMEs in India and financing consumption which is one of the key drivers of the Indian economy. Mainly, the company provides Loan against Property for MSMEs. The company also provides Home loans, gold loans, two wheeler loans, and loans for Consumer Durables. For the Long Term Rating, the company is rated AA+ by rating agencies.

Capital First has Strong distribution network of 168 branches and 1085 employees across India covering 40 cities. The Company’s AUM stood at Rs.9070 crores as on December 31st, 2013.The Gross and Net NPA of the company is only 0.49% and 0.19% as on December 31st, 2013 respectively. As of the quarter ending December 31st, 2013, the capital adequacy ratio stood at 21.35%. For more information, please visit www.capfirst.com