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Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of relief measures, according to the Reserve Bank of India’s analysis of Covid-19-related loan moratorium availed as on April 30.
As per the analysis, in terms of the number of customers, small finance bank (SFBs) saw the maximum number (84.7 per cent) of their customers opting for loan moratorium.
As a percentage of the total outstanding loans, the maximum exposure (67.9 per cent) of public sector banks (PSBs) was under moratorium.
NBFCs / HFCs
According to the central bank’s latest Financial Stability Report (FSR), the impact of the moratorium on private non-banking finance companies (NBFCs)/housing finance companies (HFCs) can be substantial, with the proportion of assets under the moratorium for NBFCs averaging between 39-65 per cent based on underlying assets, with approximately 50 per cent of the aggregate assets under moratorium as on April-end.
Based on the disclosures made by NBFCs/ HFCs, the assets under moratorium are dominated by wholesale customers and real-estate developers, although retail portfolios in the micro-loans and auto loan segments have also been affected.
According to top bankers and NBFC chiefs, the number of customers who availed the moratorium and the exposure under moratorium has come down between April and June as they realised that the interest on such loans would be capitalised.
The RBI observed that the regulatory dispensations that the pandemic has necessitated in terms of the moratorium on loan instalmentsand deferment of interest payments may have implications for the financial health of scheduled commercial banks, going forward.
“Given the fact that impact of moratorium is still uncertain and evolving, the exact nature of how the same will play out on the quality of banking assets is difficult to ascertain accurately.
“Therefore, this will only be ascertainable with the passage of time, and outcomes would be disseminated in the forthcoming publications of RBI, from time to time,” the report said.
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