Bankers divided on extending moratorium, fear potential spike in bad loans

Topics Bad loans | Indian Banks | Lockdown

The banking sector is divided on extending the moratorium on loan repayments yet again. SBI Chairman Rajnish Kumar has dismissed the need for further relaxation on repayments, with initial estimates — pertaining to the impact on banks’ asset quality in FY21 — causing much worry. Krishnan Sitaraman, senior director (financial sector ratings and structured finance ratings) at CRISIL, however, has said that slippages could increase by 250-300 bps in FY21, without any relaxation. On similar lines, Prakash Agarwal, director and head (financial institutions) at India Ra.....

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