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No 3-month relief for NBFCs, ready to help on case-to-case basis: PNB


NEW DELHI: Banks are ready to help out non-bank lenders on a case-by-case basis in the wake of the Covid-19 crisis, though there is no automatic window available to them to delay loan repayments, Punjab National Bank managing director SS Mallikarjuna Rao said. He said there could be a bad loan issue if the lockdown persisted for long.

PNB has offered a respite on Rs 4 lakh crore of loans to borrowers under the three-month moratorium on repayments announced by the Reserve Bank of India, Rao told ET.

The bank has also started three new categories of emergency-funding under a Covid window: a scheme for kisan credit-card holders with an immediate loan of up to Rs 50,000; personal loans equal to three months’ average salary with a cap of Rs 3 lakh to the salaried class, which could be repaid in three years; and a 10% top-up on current outstanding for bigger accounts of both individuals and businesses.

According to Rao, there are two categories of NBFCs. One is those that have managed to tide over their asset-liability mismatch issues from the earlier liquidity crunch by using the long-term funding — targeted longer-term refinancing operations (TLTRO) — that banks had provided over the past year and a half. The second group comprises those that have overcome the asset-liability issue to a certain extent, but still face some consistency issues.

“That window (TLTRO) will give some element of comfort to NBFCs which are running professionally well, having tided over the problem of the earlier asset-liability mismatch,” Rao said. But the second group may have a little difficulty compounded by the Covid-19 impact, he said, adding: “So, they need to be addressed on a case-to-case basis, to understand what is the problem.”


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