RBI's moratorium to hurt corporate borrowers
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Mumbai, April 1 -- Reserve Bank of India's move to allow banks to give a 3-month repayment moratorium to borrowers may stand to hurt corporate customers who have taken working capital loans. Speaking to media on Wednesday, CS Shetty, managing director of State Bank of India said that corporate customers who had availed of these loan will have to pay the 4-month interest by the end of June, failing which they will be classified as SMA 1 or Special Mention Account. SMA 1 are those accounts where repayments have been overdue for between 31 and 60 days
"For corporate customers whose working capital cycle has been impacted, the interest will get bunched up after 3 months. This will need to be repaid at the end of June," he said.
If the 3-mon...
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