All Customers not opting for loan moratorium

The Reserve Bank of India has allowed companies to opt for a three-month moratorium on loan repayments to combat lockdown, data with individual banks suggests that not many firms have chosen to defer routine interest payments for now.

The Private Banks have revealed that not many companies or salaried retail customers have opted for the three-month moratorium permitted by the RBI on March 27.

As per rating agency ICRA, about 328 companies – including The Tata Power Company, JSW Steel and Kalyan Jewellers, Air India Express and ONGC Petro Additions – have opted for the moratorium benefits.

Axis Bank said only about 25-28 per cent of the customers, in value terms, and 10-11 per cent, in absolute numbers, sought the moratorium.

A large number of small and medium enterprises, many of which have limited working capital, seem to be availing themselves of the moratorium benefit.

For wholesale and SME loans, the bank had offered the facility on an opt-in basis. It spoke to wholesale and retail customers and, only when convinced, offered the moratorium.

“The bank has given moratorium to all its retail loans while it followed an ‘opt-in’ model on the corporate side, where the need for moratorium was quite negligible,” Kotak Institutional Equities noted.

Bankers, however, said the option to avail of the moratorium was still available to borrowers and they could request for the same, depending on their cash flows.