On Monday, Fitch ratings said that the relief measures which were announced last week by the India’s Central Bank to help lenders and borrowers because of the present pandemic situation of corona virus, which will only delay the stress for Financial institutions.
Last Wednesday, Reserve Bank of India introduced certain schemes for loan restructuring which mounts the bad loans and help the borrowers and the traders who have taken loans to be paid back their debt, it provided more time for repayment. Fitch also mentioned that the measures which were released some specific relief to the all Financial institutions over the period of next 12- 24 months.
Central Bank also expressed these schemes to support the Financial sectors by the issuing of credit guarantee schemes or a blanket moratorium. The rating agency said that these indications about the economic stress.
Several states were presently facing felonious situation of corona virus and the institutions like Fitch expected a severe shock in 2020 and expecting more in the present year also.
Fitch warned , if it shows slow pace of vaccination then India could be vulnerable.