NEW DELHI: Private lenders like Uday Kotak and HDFC Ltd Chairman Deepak Parekh said they were in favour of one time loan restructuring, and don’t want extension of loan moratorium as it would further hurt the financial sector, especially non-banking finance companies.
“Please do not extend the moratorium because even those who can pay are not paying, we see that whether it is individuals or corporates, all taking advantage and deferring payments. So there is some talk that there will be another extension of three months. It’s going to hurt us, hurt the smaller NBFC particularly,” Parekh said, during an industry interaction with RBI Governor Shaktikanta Das. He also warned if restructuring is not allowed after the moratorium, then the ratings of financial institutions will come down and may have major implications on the financial sector. He said allowing one-time recast like in 2008 is worth considering.
Das said he noted all the concerns raised and have also assured that the central bank will be ready to step in and take action as and when needed.