Fearing NPAs, banks shoot off notices to malls for loan repayment

Banks want tenants to make payment in escrow accounts

Leading public sector banks (PSBs) have shot off letters to shopping mall owners, invoking contractual obligations under the lease rental discounting (LRD) facility for loan repayments.
 

Fearing that these accounts might become non-performing assets (NPAs), the PSBs have directed them to raise invoices for the month of April and ask their tenants to make rental payments in the escrow account of the respective bank.
 

LRD is a term loan offered against rental receipts derived from lease contracts with corporate tenants.

The move,