Money & Banking

RBI measures will ease liquidity, help borrowers: Karnataka Bank MD

Our Bureau Mangaluru | Updated on March 27, 2020

Karnataka Bank has said that the measures taken by Reserve Bank of India today will help ease liquidity pressure on the banking system, and help borrowers to a great extent.

Mahabaleshwara MS, Managing Director and CEO of Karnataka Bank, told BusinessLine that the steep reduction in repo rates by 75 basis points is a clear signal for banks to increase lending activity at lower interest rates, mainly to refuel the economy which is under stress due to Covid-19 and the accompanying lockdown.

Terming the three-month moratorium on payment of dues a big relief for the common man, he said it will mitigate the debt-servicing burden. On account of this measure, no account will be treated as an NPA (non-performing asset) effective from March 1, 2020.

It is definitely a way forward to overcome the financial stress caused by Covid-19, he said, adding that this is a much-sought-after relief that banks were expecting in the larger interests of the borrowers.

He said a cut in CRR has also been a long-pending request of banks, and the 100 bps cut from 4 per cent to 3 per cent is a welcome move. This would help improve the bottomline of banks going forward, he added.

Published on March 27, 2020

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