Banks to approach RBI for relief on NPA classification amid Covid-19 fears

The appeal to the Reserve Bank of India (RBI) will be made via the Indian Banks' Association, the two senior bankers said, asking not to be named as the talks were still private

The coronavirus pandemic has sparked concerns about a fresh surge in bad loans at India’s lenders, and the industry body representing the banks plans to appeal to regulators to provide some reprieve in bad-debt classification, two sources told Reuters on Tuesday.

“Discussions are on at this stage and we will make a representation to the regulator to see if we can get some relief regarding non-performing asset classification in the small and medium enterprises sector,” one of the bankers said.

The appeal to the Reserve Bank of India (RBI) will be made via the Indian Banks’ Association, the two senior bankers said,