Coronavirus outbreak: India Inc asks RBI for one-time loan recast

Analysts have already predicted that due to the lockdown, India's economic loss will be close to $ 234.4 billion or 8.1% of GDP

With zero sales and rising fixed costs, India Inc finance heads are expecting several firms, across sectors, to default on bank loans in the June quarter.

As a result, they have asked the Reserve Bank of India (RBI) to allow one-time restructuring of accounts without downgrading the same to the non-performing asset (NPA) category.

“All sectors have been affected by the Covid-19 outbreak. While some have been severely hit, others have been less affected. However, the financial blow remains severe for all. Therefore, permitting restructuring only to some sectors will not solve the problem,” said the finance head of a large conglomerate.