Most companies that availed loan moratoriums were facing challenges before COVID-19: Crisil
4 years, 4 months ago

Most companies that availed loan moratoriums were facing challenges before COVID-19: Crisil

India TV News  

Most companies that availed loan moratoriums have sub-investment grade ratings and were facing challenges before the onset of the pandemic itself due to slowing economic growth, domestic ratings agency Crisil said on Monday. In a report released on the last day of the moratorium, the agency said it analysed 2,300 non-financial sector companies which have taken recourse to non-payment of loans, and found that three-fourths of entities are sub-investment grade. It said the moratorium has provided much-needed liquidity support to mid-sized sub-investment grade companies rated 'BB+' or lower and has also prevented a sharp weakening in their credit profiles. "While every sector has been affected by the dislocations stemming from the pandemic, the majority of those with lower resilience have availed of the moratorium," its senior director Subodh Rai said.

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History of this topic

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told
4 years ago

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told

Live Law  

Senior Advocate Ravindra Srivastava, for the group, told the bench of Justices Ashok Bhushan, R. Subhash Reddy and M. R. Shah that the banks are "prevailing over" the government and the RBI and "making huge profits". Mr. Srivastava argued that while the Kamath committee had mentioned 26 sectors as having been severely-impacted during the Covid pandemic, the waiver of compound …

No case of COVID-19 related stress to which banks showed apathy, RBI tells SC
4 years ago

No case of COVID-19 related stress to which banks showed apathy, RBI tells SC

The Hindu  

The Reserve Bank of India on Wednesday maintained in the Supreme Court that there has not been a single case of COVID-19 related financial stress to which banks have shown an “apathetic” attitude. A three-judge Bench led by Justice Ashok Bhushan is hearing several pleas by industry and business sectors, including power and real estate, to extend the moratorium or …

Opinion | Pandemic pandemonium & policies - measured by moratorium and Moody’s
4 years, 2 months ago

Opinion | Pandemic pandemonium & policies - measured by moratorium and Moody’s

Live Mint  

Moratorium: A temporary stopping of an activity, especially by official agreement Interest moratorium: Temporary pause of interest payments due Pandemonium: A state of great noise and confusion Policies: A plan of action agreed or chosen by a government Pandemic: A disease that spreads over a whole country or the whole world The topic of interest calculation and its levy, which …

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors
4 years, 2 months ago

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors

News 18  

Citing Kamath Committee recommendations, the Reserve Bank of India has informed the Supreme Court that it has accepted the recommendation for different treatment for sectors namely aviation, automobile manufacturing, roads and wholesale trading. Citing the September 7 special window notification, the RBI insisted that banks have sufficient flexibility to accommodate the impact of Covid-19 while specifying specific ratios for determining …

Moratorium extension not in borrowers\' interest: RBI tells SC
4 years, 2 months ago

Moratorium extension not in borrowers\' interest: RBI tells SC

Deccan Chronicle  

New Delhi: A loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India told the Supreme Court on Saturday. In its 17-page “consolidated affidavit” filed ahead of the hearing on Tuesday of the loan moratorium case, the …

SBI loan restructuring: How interest will be calculated during moratorium extension period
4 years, 3 months ago

SBI loan restructuring: How interest will be calculated during moratorium extension period

India Today  

A few days ago, the country’s largest lender State Bank of India came out with a set of rules and regulations for offering an extension on loan repayments to those affected financially by the Covid-19 pandemic. However, there are several key aspects that Covid-affected customers need to know before availing moratorium extension on repayments under SBI’s loan repayment framework. Loan …

‘75% of firms that used moratorium rated junk’
4 years, 4 months ago

‘75% of firms that used moratorium rated junk’

Live Mint  

Three out of four non-financial companies that availed of the loan repayment moratorium are rated below investment grade, with most grappling with a slowing economy even before covid-19, rating agency Crisil said in a report on Monday. Crisil said it analyzed more than 2,300 non-financial companies, from its rated portfolio, which availed of the moratorium to tide over the cash …

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31
4 years, 4 months ago

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31

News 18  

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced by them following the outbreak of the COVID-19, sources said. It was only a temporary reprieve to borrowers affected by the pandemic, the sources said, adding that …

SC directs Centre and RBI to review loan moratorium scheme
4 years, 6 months ago

SC directs Centre and RBI to review loan moratorium scheme

Live Mint  

NEW DELHI: The Supreme Court on Wednesday directed the Centre and Reserve Bank of India to review the moratorium scheme on term loans and create tailored schemes for various sectors, including agriculture. The central bank had on 22 May extended moratorium on term loans till 31 August amid the nationwide lockdown due to covid-19. In March, the central bank had …

Moratorium will hurt NBFC balance sheets: experts
4 years, 7 months ago

Moratorium will hurt NBFC balance sheets: experts

Live Mint  

The six-month moratorium on loan repayments will hurt the balance sheets of Indian non-bank financiers, as most borrowers availed the scheme, but the lenders were denied the benefit by banks, said industry experts. Speaking via videoconference at CII’s Annual Session 2020 on Tuesday, the experts said while the moratorium will help borrowers, it was not the most effective solution to …

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]
4 years, 7 months ago

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]

Live Law  

The Maharashtra Chambers of Housing Industry – Thane Unit has approached the Supreme Court of India vide a Writ Petition under Article 32 of the Constitution of India challenging the decision of the Reserve Bank of India to allow levy interest during the 6-month moratorium period announced in the wake of COVID-19 lockdown.The MCHI – Thane Unit is an association …

Coronavirus Lockdown: SC issues notice to Centre, RBI on plea against interest on loans during moratorium
4 years, 7 months ago

Coronavirus Lockdown: SC issues notice to Centre, RBI on plea against interest on loans during moratorium

Firstpost  

The Supreme Court Tuesday asked the Centre and the RBI to respond to a plea challenging levy of interest on loans during the moratorium period, which has now been extended by another three months till August 31 due to the coronavirus pandemic New Delhi: The Supreme Court Tuesday asked the Centre and the RBI to respond to a plea challenging …

Coronavirus Lockdown: Rs 6.45 lakh cr worth loans sanctioned by PSBs during 1 March-15 May, says Nirmala Sitharaman
4 years, 7 months ago

Coronavirus Lockdown: Rs 6.45 lakh cr worth loans sanctioned by PSBs during 1 March-15 May, says Nirmala Sitharaman

Firstpost  

State-owned banks have sanctioned about Rs 6.45 lakh crore worth loans to various sectors including MSME, agriculture and retail between 1 March and 15 May when businesses were reeling under the impact of COVID-19 crisis New Delhi: State-owned banks have sanctioned about Rs 6.45 lakh crore worth loans to various sectors including MSME, agriculture and retail between 1 March and …

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium
4 years, 8 months ago

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium

The Hindu  

The Supreme Court on Thursday asked Reserve Bank of India to ensure that the central bank’s March 27 circular directing banks and financial institutions to provide borrowers a three-month moratorium on loan repayments is implemented in “letter and spirit” amid the COVID-19 pandemic. “We direct Reserve Bank of India to ensure the implementation of the circular dated March 27, 2020 …

Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer
4 years, 8 months ago

Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer

The Hindu  

The option of a moratorium on loan repayments that was announced by the Reserve Bank of India last month has mostly been availed by micro, small and medium enterprises while salaried class borrowers have, till now, largely refrained from availing the facility, bankers said. “About 85-90% of businesses in the MSME sector have availed the loan moratorium,” the chief executive …

Moratorium on repayment puts NBFCs in a spot
4 years, 9 months ago

Moratorium on repayment puts NBFCs in a spot

The Hindu  

Non-banking financial companies may face a tough time following the Reserve Bank of India’s recent directive on providing a moratorium on repayment. “With collections being minimal and the moratorium only for their borrowers, raising fresh funds is critical, especially because NBFCs, unlike banks, do not have access to systemic sources of liquidity and depend significantly on wholesale funding,” it said. …

Coronavirus | How will the three-month moratorium on EMIs impact customers?
4 years, 9 months ago

Coronavirus | How will the three-month moratorium on EMIs impact customers?

The Hindu  

The story so far: On March 27, the Reserve Bank of India slashed interest rates to counter the economic fallout of the coronavirus pandemic. It also announced other relief measures, which included permitting banks to provide a three-month moratorium on all term loans. Due to economic disruptions caused by the nationwide lockdown which has led to stress in the financial …

Coronavirus lockdown: RBI cuts repo rate, announces 3-month moratorium on loans, read details
4 years, 9 months ago

Coronavirus lockdown: RBI cuts repo rate, announces 3-month moratorium on loans, read details

Op India  

Speaking to the media on the unprecedented situation across the country due to the Chinese epidemic, RBI Governor Shaktikanta Das on Friday announced a massive 75 basis points cut in repo rates to 4.4 per cent as a measure to counter the economic slowdown caused by the COVID-19 pandemic. Addressing the effect of the coronavirus on markets, the RBI Governor …

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