Allow rejig of retail loans too: CII

Confederation of Indian Industry (CII) President and ICICI Bank Managing Director K V Kamath today pitched for restructuring of loan facility for retail borrowers to spur demand for consumer durables.

“While the extension of restructuring guidelines to the real estate sector is welcome, there is also an urgent need to enable restructuring of facilities for the retail borrowers, who constitute the consumers of products of various sectors,” Kamath said.

This is necessary to restore consumer confidence and encourage household demand and asset creation, he said.

Welcoming RBI’s move to cut one percentage point in short-term rates, at which it lends (repo) and borrows (reverse repo) from banks, the chamber asked the government for a special refinance window for transportation sector, which is witnessing an unprecedented slump in demand.

“RBI’s policy actions will certainly help in the process of reviving confidence and enabling India to weather the global economic crisis,” Kamath said.