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Extension of moratorium, loan re-structuring can be risky for lenders: Icra

Many voices have been seeking continuation of some relief in repayments because of the lackluster economic conditions

lenders, creditors, loans, lending, company, firms, industry, shares, investment
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FM Sitharaman has said the government is in discussion with RBI on a restructuring

Press Trust of India Mumbai

Extension of moratorium and one-time restructuring of loan could pose challenges to lenders, and also impact their financial stability if the quantum is large, rating agency Icra said in a report on Wednesday.

The six-month moratorium given by RBI ends on August 31 and the note from Icra comes on the eve of RBI's credit policy review, where the regulator also announces changes on the regulatory front.

Many voices have been seeking continuation of some relief in repayments because of the lackluster economic conditions.

Asset quality risks due to the relief given by RBI continue to be elevated for all financiers even as