SBI to extend moratorium to NBFCs

The country's largest lender SBI has decided to extend the RBI-approved moratorium to the cash-strapped NBFC sector to help them tide over the crisis, its MD Dinesh Kumar Khara said.

The RBI has allowed banks to extend moratorium to borrowers of term loans of all kinds for three months -- March, April and May.

"SBI has taken a decision to extend the moratorium allowed by RBI to the NBFC sector which is facing severe problem of cashflow," Khara said.

The bank would extend the moratorium to the Non- Banking Financial Companies (NBFCs) on a case-to-case basis after assessing their cash budgets and examining the need for extending it, he told.

"Just to ensure that there is no gap in the cashflow and help them tide over the contingency, SBI has taken such a decision," Khara said.

Earlier, the State Bank of India extended 10 per cent emergency COVID response contingency loan to all kinds of borrowers to an extent of Rs 200 crore each, he said. Desk: Asianet Online