RBI extends debt restructuring for MSME, ups gold LTV ratio; bank stks gain

The RBI will constitute an Expert Committee which shall make recommendations on the required financial parameters, along with the sector specific benchmark, to be factored into debt resolution plans

Rate sensitive stocks such as financials and realty counters soared in the afternoon session on Thursday after the Reserve Bank of India, in its second bi-monthly policy for financial year 2020-21 (FY21), announced measures to support NBFCs, HFCs, corporate debt market, debt MF, agriculture and backward districts (via priority sector loans). Besides, it announced a relaxation on loan-to-value (LTV) ratio for gold loans. The RBI, however, kept repo rate unchanged at 4 per cent. 

"It has been decided that stressed MSME borrowers will be made eligible for restructuring their debt under the existing framework, provided their accounts with the concerned lender