Best of BS Opinion: Loan moratorium case, AT1 bonds may lose sheen & more

Here's a selection of Business Standard opinion pieces for the day

The Supreme Court’s refusal to extend the loan moratorium period and a total waiver of interest payments is a big relief for both the banking system and the government. An interest waiver on this scale would have significantly impaired the banking system, with wider macroeconomic consequences. Also, the decision to lift the stay granted on classification of non-performing assets will lead to an increase in the level of bad loans to some extent, but it ends the prolonged uncertainty on the issue. In this context, bankers have argued that the impact of the pandemic has been less severe than anticipated. The actual picture would only become clear after the first quarter of the next fiscal year. Although it came a bit late, the judgment is another step forward to economic normalcy, notes our lead editorial
 

Underestimating the revenue numbers gives the government an added advantage in terms of managing the impact of the fiscal deficit on the economy, writes A K Bhattacharya
 

The Securities and Exchange Board of India has taken a pragmatic decision to implement the proposed valuation method for perpetual bonds, or additional tier-1 (AT1) bonds in a phased manner, argues our second editorial

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“It is neither within the domain of the courts nor the scope of judicial review to embark upon an enquiry as to whether a particular public policy is wise or whether better public policy can be evolved."

Supreme Court of India