However, they said they would like the government to compensate them for their cost by way of paying interest to their depositors.
"We would like the government to help us some way by compensating us for the cost we have incurred.But it's too early to take a call as we are yet to assess the actual impact on us, collectively and individually," Ramesh Iyer, FIDC chairman and head of Mahindra Finance, said.
Iyer said the penal interest would add up only trite as NBFCs are typically small ticket loan suppliers.
TT Srinivasaraghavan of Sundaram Finance also said the system-wide impact is very minimal only but they are yet to assess it fully well.
After the SC ruling that also did not extend the moratorium period beyond August 31, 2020, rating agencies Crisil and Icra said, the system-wide interest on interest would be around Rs 14,500 crore, equally split between banks and NBFCs, and that the government which has already made a payout of Rs 6,500 crore, would have to shell out an additional Rs 7,500 crore if it chooses to give the interest waiver as ex-gratia as in the case of small loans.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.