A fascinating exchange between the veteran of Indian financial sector Deepak Parekh and Reserve Bank of India governor Shaktikanta Das at an industry event last week laid bare a divide within corporate India. Lenders do not want the moratorium extended but borrowers are batting for an extension.
Amidst all this, the finance minister has hinted that a one-time restructuring of loans is in the making and the government is “actively engaged with the RBI.”
While banks are more welcoming of a restructuring of loans than a moratorium, former deputy governor NS Vishwanathan warned that a restructuring if it is granted, must be very tightly targeted.
So, should the RBI grant a one-time restructuring? If yes, what should be the conditions? To discuss this Latha Venkatesh spoke to Sunil Srivastava former Deputy MD of State Bank of India, RK Bansal MD & CEO of Edelweiss Asset Restructuring Company, V Srinivasan former Deputy MD of Axis Bank and Sunil Mehta CEO of Indian Banks Association.