INDUSTRY VIEW - Company officals react to policy, rate cuts

MUMBAI (Reuters) - The Reserve Bank of India lowered its key short-term rates by 25 basis points each and forecast economic growth of 6 percent for the year that began on April 1.

The bank cut its reverse repo rate to 3.25 percent and the repo rate to 4.75 percent, effective immediately. It also lowered its estimate for economic growth for the previous fiscal year that ended March 31 to 6.5 percent from its previous estimate of 6.7 percent.

Following are comments from company officials to the rate cut and policy comments:

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PRADEEP JAIN, CHAIRMAN PARSVANTH DEVELOPERS

"It is a good move. But at the same time the cental bank needs to tell banks to reduce rate of interest. The central bank keeps cutting rates and keep increasing liquidity but financial institutions are not reacting. But every step taken helps the industry.

"The central bank needs to do two major things: one, issue guidelines to financial institutions to reduce interest rates on existing lendings. Two, liquidity must be given to people who need money, not to be reinvested in government securities."

ARVIND PAREKH, DIRECTOR-STRATEGY, JINDAL STAINLESS