Covid-19: Lenders seek deferment in loan repayment, reclassification of NPA

IBA's managing committee met on Friday and decided to put up five set of demands to the central government and RBI to help the financial sector and retail and corporate borrowers alike

Lenders are set to demand a host of relaxations on repayment of loans in a bid to tide over the COVID-19 crisis. These include a 90-day relief in classifying accounts as non-performing assets (NPAs) and deferring installment of term loans.

The management committee of the Indian Banks’ Association (IBA) met on Friday and froze a set of demands that it will put up before the Reserve Bank (RBI) and the government. It will make a bid to help the sector and retail and corporate borrowers alike, IBA chief executive officer (CEO) Sunil Mehta told Business Standard over phone.

“We are asking for