The second set of measures announced by RBI for COVID-19 pandemic-stricken economy got a thumbs-up from bankers who welcomed the steps taken as per the evolving market conditions.
SBI Chairman Rajnish Kumar, who also heads industry lobby grouping IBA, called the measures, which included both regulatory as well as liquidity interventions, as "rightful recognition to the evolving market conditions" by RBI.
"Overall, the second set of package by RBI is an excellent reflection of combining the policy response and regulatory responses in the most optimal manner," he said in a statement.
Kumar said the second set of targeted long term repo operations will help non-bank lenders and micro lenders.
He also welcomed the refinancing support for Sidbi, NHB and Nabard, saying deserving sectors will get help.
British lender Standard Chartered Bank's country chief executive Zarin Daruwala called the announced measures second booster shot to the economy from RBI within a month, and added that steps like reducing liquidity coverage ratio requirements and NPA relief during moratorium will improve credit delivery appetite.
Padmaja Chunduru, the managing director and chief executive of the state-run Indian Bank, said RBI's tone is full of empathy and support to the needy sectors of the economy.
Small businesses and retail borrowers will benefit through the 90-day extension in NPA recognition for stressed standard assets, while the 90-day extension given for NCLT filing in cases of bad loans will save banks 20 per cent in provisions, she said.
SBI chairman Kumar also said that allowing 90-day asset classification standstill for accounts covered under moratorium will "imbibe banks with the desired operational flexibility to lend a helping hand to stressed accounts".
He also welcomed the decision to allow banks to conserve capital by restraining them from dividend payouts as a move which will aid in supporting the economy.
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