RBI relief measures may cushion NPA blow from second Covid wave: Analysts

Analysts see the RBI's announcements to be sentimentally positive for the banking sector even as Covid-19 situation remains dynamic

The Reserve Bank of India’s (RBI’s) move to announce fresh round of restructuring of loans for individual and small borrowers for up to two years is a start of a possible long-drawn battle, say analysts who hailed the timely action by the central bank but fell short of giving a verdict on the impact on the sector.
 

The possible impact on the banking sector of the announcements is difficult to be assessed at the moment as the Covid-19 situation remains precarious, they say.
 

“The RBI has done something to begin with which addresses the concerns of, both, the lenders and