"It is imperative that restructuring of loan accounts in select sectors is used as a policy option after August 31, to mitigate stress," the SBI
economists said in a report adding that the setbacks are emanating from the continuing limited-area lockdowns and also job losses.
"We believe some sectors/companies may need support like one-time restructuring, sectoral support etc. to tide over the situation," they added.
Last week, Union Finance Minister Nirmala Sitharaman
said the government is actively engaged in talks with the Reserve Bank of India (RBI) on loan recasts.
"The focus is on restructuring. The finance ministry is actively engaged with the RBI on this. In principle, the idea that there may be a restructuring required, is well taken," she had said.
In the corporate segment, companies with adequate balance sheet strength have also opted for a breather and are using the moratorium to conserve cash in the uncertain times, they said.
Citing an independent sectoral analysis of over 300 companies having a debt of over Rs 4 trillion, it said that 40 per cent of the moratoriums are in sectors with comfortable debt-to-equity ratio like pharmaceutical, fast-moving consumer goods and healthcare, they added.
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