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COVID-19 stress in loans: FM Nirmala Sitharaman to meet banks, NBFCs on September 3

The review meeting will be held ahead of the KV Kamath-led committee's recommendations on the qualifying criteria for restructuring of loans impacted by the coronavirus crisis

twitter-logoBusinessToday.In | August 30, 2020 | Updated 13:58 IST
COVID-19 stress in loans: FM Nirmala Sitharaman to meet banks, NBFCs on September 3
Finance Minister Nirmala Sitharaman will meet top officials of banks and NBFCs on September 3

Finance Minister Nirmala Sitharaman is set to meet with top management of Scheduled Commercial Banks (SCBs) and Non-Banking Financial Companies (NBFCs) on Thursday, September 3 to review the implementation of a resolution framework for COVID-19-related stress in bank loans.

The Ministry of Finance said in a statement that the meeting will "focus on enabling businesses and households to avail the revival framework on the basis of viability" adding that essential measures such as "finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation" will also be discussed.

Also Read: Banks sanction Rs 1.56 lakh crore loans to MSMEs under credit guarantee scheme

The review meeting will be held ahead of the KV Kamath-led committee's recommendations on the qualifying criteria for restructuring of loans impacted by the coronavirus crisis.

The Reserve Bank of India (RBI) Governor Shaktikanta Das had, earlier this month, said that a resolution framework for COVID-19-related stressed accounts will be concluded and finalised by September 6.

Also Read: Govt working with RBI to extend moratorium, restructure loans, says FM Nirmala Sitharaman

Das had announced the resolution framework for such (COVID-19-related stressed) accounts after the Monetary Policy Committee's (MPC) meet on August 21.

Meanwhile, banks have also begun identifying borrowers eligible for one-time debt restructuring. Punjab National Bank (PNB) said last week that 5-6 per cent of its loan book may qualify for a one-time debt recast. They (banks) are expecting to get clearer picture by September, when the KV Kamath committee's guidelines on debt recast are likely to be released.

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