Centre to ensure interest waiver benefits to small borrowers by Nov 2

Experts say provisioning requirements for banks may go up 20-50 per cent in Q2 due to SC standstill order

The Union government is set to pass on the benefits of the compound interest waiver to small borrowers before November 2.

Banks, on the other hand, have started making additional provisioning based on their own judgment of the loan books in balance sheet for the second quarter following the Supreme Court’s standstill order on classifying loans as non-performing assets (NPA).
 

“We are putting all our efforts to ensure that we pass on compound interest waiver to borrowers before the SC deadline,” a top government official said, requesting anonymity.
 

Both state-owned and private lenders will be asked to refund the