Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear

Banks expect faster disbursement of sanctioned money to micro, small and medium enterprises (MSMEs) after the lockdown is lifted, with the fear of money coming back being addressed in the form of guarantees.
 

While the issue of providing liquidity to existing borrowers who are sapped of revenues has been addressed, banks will have to undertake due diligence on the solvency of units, said bankers.
 

Public and private sector bankers said the government was setting bigger goals, and with the present disruption, the challenge was beyond just providing money to address immediate liquidity concerns. It has been a blow to units