Banks say only a few companies are opting for loan moratorium: Report
The RBI had on March 27 granted a moratorium on term loans whose installments are due between March 1 and May 31.
April 30, 2020 / 02:07 PM IST
Not too many companies are opting for the three-month moratorium on term loans given by the Reserve Bank of India (RBI).
Private lenders such as HDFC Bank, Axis Bank and IndusInd Bank quoted in the report by Hindu BusinessLine said that only a few companies and salaried retail customers have sought the moratorium.
Moneycontrol could not independently verify the story.
The central bank had on March 27 granted a moratorium on term loans whose installments are due between March 1 and May 31.
The move was intended to provide borrowers some relief during the nationwide lockdown to contain the spread of COVID-19.
During an analyst call, Axis Bank said only about 25-28 percent of its customers, in value terms, and 10-11 percent, in absolute numbers, have availed the moratorium, the report said.
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"The bank has given moratorium to all its retail loans while it followed an 'opt-in' model on the corporate side, where the need for moratorium was quite negligible," Kotak Institutional Equities said, as quoted by the paper.
The report said most banks noted that salaried customers are selectively opting for the moratorium.
"Salaried borrowers, whose salaries have not been impacted due to the lockdown or those who feel they can continue to and have the capacity to pay EMIs, have not opted for the moratorium," the report said.
ICRA on April 24 said 328 companies have opted for the loan moratorium, including Jindal Steel and Power, JSW Steel and Air India Express.Follow our full coverage of the coronavirus pandemic here.