The loan restructuring package
announced by the Reserve Bank of India evoked mixed reactions from experts in the financial sector, as some found it helpful for the tourism industry, while others described the guidelines of the scheme as "restrictive" to the NBFCs.
Tourism Finance Corporation of India MD and CEO Anirban Chakraborty said hotels and the hospitality sector are under the MSME segment in the loan restructuring framework of RBI.
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The emergency credit line extended to the borrowers is a good measure to help the sector sustain for the next two years, he said at a webinar organised by Enqube Collaborations on Friday.
Chakraborty said 70 per cent of TFCI's portfolio is with the MSME sector and this credit line with the government guarantee will help the industry.
According to him, tourism and hospitality, one of the worst-hit sectors due to the COVID-19 pandemic, is expected to bounce back in the third or fourth quarter of the current fiscal.
Srei Infrastructure Finance vice chairman Sunil Kanoria said the RBI restructuring package is somewhat "restrictive and not a workable solution".
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"I have a contrarian view of the RBI guidelines. These are restrictive and not workable. The guidelines should have been left to the lenders and borrowers, which would have been better," he said.
Regarding the NBFCs, Kanoria said this sector is deprived of availing of the moratorium on repayments of loans taken from the banks.
"Though we are extending the moratorium to our customers, we are not getting the same benefit from banks so there is a mismatch on the liability side," he added.
Union Bank of India Executive Director B Mishra said that COVID-19 has led to behavioural changes on the part of the government, regulator, bankers and borrowers.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)