One-time restructuring of loans needed: Srei chief on SBI's moratorium offer
Srei Infrastructure Finance
chairman Hemant Kanoria on Thursday welcomed SBI's decision to extend moratorium to NBFCs, but said the need is of one-time restructuring of loans.
State Bank of India (SBI), the country's largest lender, has decided to extend the RBI-approved moratorium to the cash-strapped NBFC sector to help them tide over the crisis.
The RBI has allowed banks to extend moratorium to borrowers of term loans of all kinds for three months -- March, April and May.
"Three months moratorium is not going to help as it will end in May and economic activity is yet to pick up in the country," Kanoria told PTI.
"What we basically need is that there should be one- time restructuring of loans of all the borrowers, including NBFCs, based on their future cash flow," he added.
SBI would extend the moratorium to the Non-Banking Financial Companies (NBFCs) on a case-to-case basis after assessing their cash budgets and examining the need for extending it.