Loan moratorium case: SC verdict may hit banks in short-term, say analysts

Loan moratorium case: The Supreme Court said that the waiver of complete interest is not possible as it affects depositors

The Supreme Court (SC) pronouced verdict on loan moratorium case on Tuesday and declined to extend the six months loan moratorium, observing further that the waiver of complete interest is not possible. The apex court said that the waiver of complete interest is not possible as it affects depositors.

However, it said that any amount collected as compound interest shall be adjusted to the next installment payable instead of refunding it to the borrower irrespective of the loan amount.

Pronouncing its verdict on a batch of pleas by various trade associations, seeking an extension of loan moratorium and other