MUMBAI : Banks may see a spike in bad assets after providing the three-month moratorium which is due to end on 31 May, as the covid induced lockdown continues to exacerbate the repayment capabilities of borrowers.
Banks like RBL Bank and Yes Bank have recently disclosed that at least 33% of their loan books are under moratorium at the moment.
The deferment on repayments was permitted by RBI on 27 March. While RBL Bank said that one-third of its total loan book is under moratorium, another private sector lender, Yes Bank said between 35-45% of its loan book by value is under moratorium.
Experts pointed out that this could become a problem going ahead as borrowers who have availed of the deferment will find it difficult to repay all the