Economic recovery in India hinges on moratorium duration: Chris Wood

Wood suggests that moratorium could trigger a consumer lending non-performing loans (NPL) cycle

The decision on whether to extend the moratorium on loans till December 2020-end will be a crucial factor in determining the pace of recovery for the economy, banks and the real estate market in India, wrote Christopher Wood, global head (equity strategy) at Jefferies, in GREED & fear — his weekly note to investors.

“A critical question for the banks, the property market and indeed the economy is now whether the moratorium is extended yet again. Still until proven otherwise, investors should probably assume that the moratorium will be extended for another four months to the end of the calendar