Rescheduling installments may be better than a moratorium: Ramesh Iyer

"We have made Covid-19-related provisioning in the March quarter. We believe that even by May-end things will open up slowly and normalisation could take another 60 - 90 days," Iyer said

Ramesh Iyer, Vice Chairman and Managing Director, M&M Financial Services says some of the rescue measures announced by the government and the easing of lockdown could give a fillip to vehicle financiers. Iyer, who is also the chairman of Finance Industry Development Council (FIDC), a representative body for non-banking finance companies, tells Hamsini Karthik and Shreepad S Aute, that flexibility to reschedule monthly instalments would benefit NBFCs. Edited excerpts:

You had earlier said that this year’s festive season would be the recovery phase for vehicle financiers.

I’d hold on to the guidance that festival season would see the first turnaround