Money & Banking

34.67% borrowers opt for moratorium benefits at Karnataka Bank

Mangaluru | Updated on June 10, 2020 Published on June 10, 2020

Around 34.67 per cent borrowers by numbers and 46.62 per cent by value (loan amount) have opted for moratorium benefits in Karnataka Bank.

The bank informed this to the stock exchanges following a SEBI advisory on the disclosure of the material impact of Covid-19 on listed entities.

The bank said that in accordance with the regulatory package announced by Reserve Bank of India (RBI) it has extended moratorium for all standard loans outstanding as on February 29 from payment of instalments falling due between March 1 and August 31.

“So far, borrowers consisting of about 34.67 per cent by numbers and 46.62 per cent by value (loan amount) have opted for moratorium benefits, even though the said facility was extended to all eligible borrowers,” it said.

Economic slowdown

On account of economic slowdown across the sectors, banking business is also likely to be low profile during the first half of the current financial year and may thereafter bounce back depending on the government packages, economic stimulus, calibrated response of the regulators and State governments, it said.

Accordingly, Karnataka Bank also expects a moderate growth in banking business during the second half of current financial year, the statement said.

On the impact of Covid-19 on capital and financial resources, the bank said in the statement that it has already initiated various capital/cost conserving measures, and is already in the ‘conserve-and-consolidate’ mode.

Referring to the impact on the bank’s profitability, the statement said that due to subdued business environment, the demand for credit may be muted initially, thus affecting the top line of the bank. This has already been factored into while drawing the business plan for the current financial year.

It said that further prolonged lockdown, coupled with subdued economic activities, may have an adverse impact on repayment of loans and assets quality that are being closely monitored.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on June 10, 2020
This article is closed for comments.
Please Email the Editor