Last week, the Reserve Bank of India (RBI) announced 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. But Fitch Ratings said, on Monday, that the measures will only delay the stress for financial institutions.
The relief measures were to help lenders and borrowers during the new devastating wave of COVID-19 infections.
Fitch said these measures would provide some relief to financial institutions over the next 12-24 months but at the expense of delaying the recognition and resolution of underlying asset-quality problems.
Source: Money Control