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Monday, August 03, 2020

No need for moratorium beyond Aug 31: SBI Chairman

Bankers are worried that loan restructuring, if allowed, will be misused by corporates.

By: ENS Economic Bureau | Mumbai | Published: August 1, 2020 12:55:29 am
State Bank of India , Rajnish Kumar, Rajnish Kumar on lenders, Rajnish Kumar on bad loans, SBI bad loans State Bank of India Chairman Rajnish Kumar.

After HDFC chief Deepak Parekh, State Bank of India (SBI) Chairman Rajnish Kumar Friday came out against extending the moratorium on term loan repayments beyond August. “Most bankers, including myself, believe that there is no need for a moratorium beyond August 31,” he said. “We are confident that six months is long enough for allowing non-repayment.”

Bankers are worried that loan restructuring, if allowed, will be misused by corporates. Loan moratorium by the RBI is being misused some borrowers who have the capacity to pay up. Parekh had earlier this week urged Reserve Bank Governor Shaktikanta Das not to extend the loan moratorium beyond August.

SBI Q1 standalone net profit rises 81%

SBI posted a 81 per cent rise in standalone net profit to Rs 4,189 crore for the quarter ended in June as against Rs 2,312 crore in the same period of last year.

NPAs fell during the quarter, while gross NPAs were down at 5.44 per cent of advances from 7.53 per cent a year ago.

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