RBI relief will only delay stress for financial institutions, says Fitch

Measures would help for 12-24 months but at the expense of delaying the resolution of asset-quality problems, says agency.

Topics
RBI Policy | financial institutions | asset quality review

Reuters  |  Bengaluru Last Updated at May 10, 2021 11:13 IST

Relief measures announced by India's central bank last week to help lenders and borrowers during the new devastating wave of COVID-19 infections will only delay the stress for financial institutions, Fitch Ratings said on Monday. The Reserve Bank of India (RBI) rolled out last Wednesday a slew of measures including a loan restructuring scheme to help lenders tide over mounting bad loans and give some borrowers more time for debt repayment. Fitch said these measures would provide some relief to financial institutions over the next 12-24 months but at the expense of delaying the ...