Categories: Business

HDFC chairman urges RBI to not extend loan moratorium

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HDFC chairman urges RBI to not extend loan moratorium

new Delhi. HDFC Ltd. Deepak Parekh, chairman of the bank, urged RBI Governor Shaktikanta Das on Monday not to carry forward the deferment given to repay the loan installment as many units are taking undue advantage of the scheme despite having the ability to pay and this affected the financial sector Happening. In view of the Kovid-19 crisis, the six-month deferment period for repayment of loans given by banks and financial institutions by the Reserve Bank ends on August 31. Now there is a demand to extend this exemption for three more months because the impact on income is still due to the Kovid-19 epidemic. The resumption of 'lockdown' in many parts of the country has not made business activities normal.

In a session of interaction with RBI Governor during an event organized by industry body CII, Parekh requested Das, "Please do not extend the period of repayment of loan installment as we see that people who have There is the ability to pay, be it a person or a company, they are taking advantage of it and defer payment. "He said," There is a discussion that this can be extended for three months, this We are being affected and this is especially affecting the small NBFCs (non-banking financial companies). "To this, the RBI governor said that he is not in a position to say anything at this time but he has heard the suggestion. . . Parekh also suggested that the central bank should buy the bonds of financial institutions directly as it is happening in some other countries. He said, "Globally, the central bank buys private sector bonds, commercial paper, you have taken the stand that we will fund the banks and the banks will buy these products." On this, Das said that the law in the country Does not allow it. However, he said that bonds worth Rs 1 lakh crore were issued in the first quarter of the current financial year, which is more than the corresponding quarter of the last financial year. Das said, "Most of the resources went to bonds rated" AAA "while bonds with" AA "and" A "ratings did not go through." The government has brought some schemes. This includes the purchase of bonds from stressed NBFCs and housing finance companies and a guarantee of up to 20 percent on the first loss. Das said that bonds below 'AAA' rating are also witnessing activity and the situation has changed with the central bank raising cash. He said, "I assure you that RBI is keeping an eye on things. Whenever some steps need to be taken, we will not hesitate to take the initiative."

This post was published on July 28, 2020 1:27 am

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