High risk aversion of most lenders is astounding, says Bajaj Finserv CMD

Instead of extending the moratorium by another three months, it would have been better to allow lenders to offer a one-time restructuring only to those who need it, says Sanjiv Bajaj

As head of the country’s largest NBFC, Bajaj Finserv CMD Sanjiv Bajaj does not mince his words. In an interview with Surajeet Das Gupta, he says it is unacceptable that banks should refuse to lend to NBFCs and fears that the extension of the EMI moratorium might alter borrower behaviour. Bajaj also admits there is always a fear of countries’ sovereign rating going down. Edited excerpts:

Do you think the RBI’s extension of the EMI loan moratorium for another three months is enough for the industry?

Borrowers had received a three-month moratorium earlier which was necessary when the entire country