The RBI has now made it official that an estimated of Rs 38.68 lakh crore of the total amount of Rs 100 lakh crore of the outstanding loan in the entire banking system is now under a 6-month moratorium.
The figure is an estimate by taking into consideration an average of 65 per cent loan moratorium requests from both retail and corporate borrowers as a part of the COVID-19 relief package.
The two major banks Bank of Baroda and IDBI Bank has declared 65 per cent and 65-70 per cent of its loan book under moratorium respectively. Small Finance Banks have also been severely impacted with microlenders like Bandhan Bank recording 90 per cent of its microloan book under moratorium.
Private sector banks’ 30 per cent moratorium was also announced in May this year. As a part of the COVID-19 relief package announced to the borrowers, banks are losing monthly cash inflows of around Rs 33,500 crore in deferred interest. For the 6-month moratorium period, this is figure is likely to be Rs 2 lakh crore.
This interest loss has been recorded as a response to litigation filed for a complete waiver of the interest amount. RBI has said that the demanded waiver on interest would lead to severe consequences on the stability of the entire country’s financial system.