SBI to extend moratorium to NBFCs to tide over coronavirus pandemic crisis, says MD Dinesh Kumar Khara
The country's largest lender SBI has decided to extend the RBI-approved moratorium to the cash-strapped NBFC sector to help them tide over the crisis, its MD Dinesh Kumar Khara said on Thursday
Kolkata: The country's largest lender SBI has decided to extend the RBI-approved moratorium to the cash-strapped NBFC sector to help them tide over the crisis, its MD Dinesh Kumar Khara said on Thursday.
The RBI has allowed banks to extend the moratorium to borrowers of term loans of all kinds for three months -- March, April and May.
"SBI has taken a decision to extend the moratorium allowed by RBI to the NBFC sector which is facing severe problem of cashflow," Khara said.
The bank would extend the moratorium to the Non-Banking Financial Companies (NBFCs) on a case-to-case basis after assessing their cash budgets and examining the need for
extending it, he told PTI.
"Just to ensure that there is no gap in the cashflow and help them tide over the contingency, SBI has taken such a decision," Khara said.
Earlier, the State Bank of India extended 10 percent emergency COVID response contingency loan to all kinds of borrowers to an extent of Rs 200 crore each, he said.
Reserve Bank Governor Shaktikanta Das on Monday reviewed liquidity position and ways to promote lending to the MSME sector during a meeting with representatives of NBFCs and mutual funds amid the lockdown induced by the COVID-19 pandemic.
Operations of NBFCs have commenced from Monday as the government eased restrictions for the lockdown.
Some of the issues discussed during the meeting included the availability of liquidity from banks and other financial institutions and post-lockdown strategies for supply
of credit, including working capital, to MSMEs, traders and bottom of pyramid customers in semi-urban, rural and urban areas, the RBI said.
Implementation of three months moratorium on repayment of loan instalments announced by the RBI, and strengthening grievance redressal mechanisms were also discussed.
The governor acknowledged the critical role of NBFCs, including microfinance institutions (MFIs), in delivering last-mile credit, and the importance of mutual funds in financial intermediation, RBI said in the statement.
The RBI governor on Saturday had met heads of the public sector and private sector banks asking them to step up their lending towards the MSME sector.
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The active cases comprises 0.10 per cent of the total infections, while the national COVID-19 recovery rate has increased to 98.72 per cent, the health ministry said
The sensor used in the mask can respond to as little as 0.3 microlitres of liquid containing viral proteins, about 70 to 560 times less than the volume of liquid produced in one sneeze and much less than the volume produced by coughing or talking