Collection efficiency after November 14 at 50%: Satin Creditcare

Bringing relief to banks and non-banking finance companies (NBFCs), the RBI has decided to allow banks 60 more days for recognition of loans as standard in certain cases. This is in view of the impact of demonetisation on borrowers, who are finding it difficult to pay back loans.However, HP Singh, Founder & MD of Satin Creditcare says that the re-classification done by RBI is not a repayment holiday.In an interview with CNBC-TV18, Singh said it is reclassification of dispensation of non-performing assets (NPAs) for another 60 days.On the impact of demonetisation on repayment of loans, Singh said that the borrowers have an intent to repay. The collection efficiency after November 14 has been 50 percent. He also said that there will be a slight fall in credit growth. He also threw light on banking habits in the country. According to him, 40 to 50 percent people in villages have bank accounts but they are dormant as the bank branches are far off. Watch video for more...