Coronavirus: Increased liquidity, moratorium to help mend corporate finance

The RBI measures will help the infrastructure sector companies which are facing sudden collapse in their business

Corporate India, which had been demanding a six-month moratorium on interest payment to blunt the impact of the coronavirus pandemic, received a shot in the arm from the Reserve Bank of India (RBI) on Friday. The central bank injected liquidity of Rs 3.7 trillion into the system and announced a three-month repayment moratorium for all term loans outstanding as of March 1, 2020.

Venu Srinivasan, chairman, TVS Motor, said the RBI’s steps will give some breathing space to banks and non-banking financial companies (NBFCs) for recognition of non-performing assets (NPAs), and in terms of repo rates and statutory liquidity ratio