Page 10 - Banking Finance April 2020

RBI CORNER

The Hinduja Group presently holds 15% payment from the convenience of their said it was difficult to assess the num-
stake in IndusInd Bank, according to a homes through online channels like ber of customers availing themselves
media report. mobile banking, internet banking, of the moratorium on the wholesale

The report quotes Ashok Hinduja, cards, etc. and avoid using cash which and SME banking side.
Chairman of the Hinduja Group of may require going to crowded places IndusInd Bank, which announced its Q4
for sending money or paying bills.”
Companies (India), as, “We have just results, also said a very small percent-
recently written to the RBI to increase The RBI governor Shaktikanta Das said age of corporate borrowers have
shareholding from 15% to 26%. When the RBI is encouraging banks and cus- sought this moratorium.
I saw that Kotak Mahindra Bank has tomers to use digital banking facilities “The bank has given moratorium to all
got a dispensation, we also thought of as far as possible. its retail loans while it followed an ‘opt-
writing to them. Why not give us that in’ model on the corporate side,
dispensation as well? Let’s see how Companies reluctant to where the need for moratorium was
they respond.” quite negligible,” Kotak Institutional
avail moratorium of loan
“My message to the regulator is that, Equities noted.
Even though RBI has allowed compa-
when the original licences were given, To help borrowers tide over the liquid-
promoters could hold more, about 40- nies to opt for a 3 month moratorium ity crunch and not default on loan re-
49%. The stronger the promoter, the on loan repayments in the wake of the payments, the RBI had announced a
more committed he will be — more national lockdown, data with indi- three-month moratorium on payment
capital will be infused by the promoter vidual banks suggests that not many of instalments for all term loans due
in the bank,” Hinduja said. firms have chosen to defer routine in- between March 1 and May 31. Most
terest payments for now.
“This is the right opportunity for us to banks have also indicated that retail
Banks like HDFC Bank, Axis Bank and borrowers are also taking up the mora-
support the bank, though it does not
need capital for two years. It is always IndusInd Bank, have revealed that not torium facility on a selective basis.
better to come in when the prices are many companies or salaried retail cus- “Salaried borrowers, whose salaries
down,” he added. tomers have opted for the three- have not been impacted due to the
month moratorium permitted by the lockdown or those who feel they can
RBI.
RBI makes non-cash digital continue to and have the capacity to
As per rating agency ICRA, about 328 pay EMIs, have not opted for the
payment options available companies — including The Tata Power moratorium,” said another banker,
round the clock Company, JSW Steel and Kalyan Jewel- pointing out that many others have
lers, Air India Express and ONGC Petro also realised that they would have to
Amid the Covid-19 panic, the RBI has
Additions — have opted for the mora- pay interest on the deferred EMIs,
stated that NEFT, IMPS, UPI and BBPS
will be available round the clock with torium benefits. which acted as a disincentive. “Axis
the aim of facilitating fund transfers, Axis Bank said only about 25-28 per Bank said many retail borrowers have
payment of bills, , purchase of goods/ cent of the customers, in value terms, taken the moratorium despite having
services etc. and 10-11 per cent, in absolute num- adequate balances just to preserve li-
bers, sought the moratorium. quidity amid uncertainty,” said a note
NEFT is National Electronic Funds by ICICI Securities.
Transfer, IMPS is Immediate Payment A large number of small and medium HDFC Bank said that on the retail side
Service, UPI is Unified Payments Inter- enterprises, many of which have limited also, the number of customers apply-
face and BBPS are Bharat Bill Payment working capital, seem to be availing ing for a moratorium is low. Of those
System. themselves of the moratorium benefit.
who have applied, nearly 95-98 per
RBI notification said, "In the context of For wholesale and SME loans, the bank cent are not in default as on February
the efforts to limit the fallout of the had offered the facility on an opt-in 29, but are availing themselves of it
corona virus pandemic by avoiding so- basis. It spoke to wholesale and retail just to be cautious rather than for fear
cial contact and visit to public places, customers and, only when convinced, of stress. The bank surveyed about
public can use these modes of digital offered the moratorium. HDFC Bank, 1,000 customers to get their feedback.

8 | 2020 | APRIL | BANKING FINANCE