Categories: Business

RBI may not extend moratorium on repayment of loans beyond Aug 31 | Know whether the limit of Lone Moratorium will increase after 31 August, here

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RBI may not extend moratorium on repayment of loans beyond Aug 31

new Delhi. Indian The Reserve Bank of India (RBI) may not extend the moratorium on banks from August 31 onwards. Sources said that extending the exemption on loan payments may affect the loan behavior of the borrowers and this will not solve the issues faced by them due to Kovid-19. The Reserve Bank of India gave exemption on payment of loan installments for six months from March 1, giving relief to companies and individual people as normal business activities were severely affected in the midst of Kovid-19 epidemic. The moratorium on rebate or installment payments expires on August 31.

Sources said this was a temporary relief for the borrowers. He said that if the exemption period is extended beyond six months, it may affect the loan behavior of the borrower customers and increase the risk of default after the commencement of the repayment period. Many bankers like HDFC Ltd. Deepak Parekh, Chairman of Uday Kotak, Managing Director of Kotak Mahindra Bank, has urged Reserve Bank Governor Shaktikanta Das not to extend the facility as many people are taking undue advantage of it.

Meanwhile, another Reserve Bank report said that the operating profit of manufacturing companies declined due to a decline in sales in the January-March quarter of the previous fiscal year 2019-20. This fact is revealed in the analysis of central bank listed non-government non-financial (NGNF) companies. It added that the operating profit of service sector companies (IT and non-IT) declined due to a decrease in sales in the fourth quarter. The analysis is based on quarterly financial results of 2,620 listed NGNF companies. According to the analysis, sales of manufacturing companies declined by 15.6 percent in the fourth quarter of the last financial year. Sales of these companies grew by 5.9 percent in the fourth quarter of 2018-19.

This post was published on August 29, 2020 9:17 am

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