On Friday, State Bank of India (SBI) chairman Rajnish Kumar told reporters that close to 20 percent of the bank’s borrowers have availed moratorium on repayment of term loans instalments.
This comes after the Reserve Bank of India (RBI) allowed banks and other lending institutions to extend the moratorium on loans by another three months to 31 August 2020.
Previously on 27 March, the central bank had announced a three-month moratorium on payment of all term loans falling due between 1 March and 31 May 2020.
“In case of State Bank of India, the percentage (of borrowers who have availed the moratorium) is very small…around 20 pe cent,” Kumar told reporters through a video conference.
He said not all who have availed the moratorium are facing any liquidity issue.
“Many of them could have serviced their loans but as a matter of strategy they would want to preserve their cash and have opted for the moratorium,” he said.
Kumar also advised borrowers to pay their loans if they are not facing any funding challenge.
“If people are able to pay (EMIs) they should pay. If they are unable to pay then only they should take the benefit of the moratorium,” he said.
According to Kumar, the RBI’s moratorium will take care of the cashflow disruption of borrowers and there might not be any urgent need for a dispensation of one-time restructuring of stressed accounts from the RBI.
