IDBI Bank<\/a> head Rakesh Sharma expects 4-5 per cent of accounts to go for restructuring and in the worst case scenario, 6-8 per cent may opt for debt recast.<\/p>\nWhen asked whether there was pressure on giving credit under the Rs 3 lakh crore credit guarantee scheme for MSMEs, Rajnish Kumar categorically said there was no question of pressure from the government as the scheme was designed after a lot of consultation with the Department of Financial Services (DFS) and commercial banks.<\/p>\n
\u201cThe scheme design was such that it takes care of the MSME sector because there is a temporary disruption of cash flow and liquidity support is required. If you look at the entire package, this is one of the most successful,\u201d he said.<\/p>\n
Puri said HDFC Bank was one of the biggest supporters of the credit guarantee scheme and was the most aggressive participant.<\/p>\n
According to Kumar, consolidation in the banking sector can enhance banks\u2019 ability to fund large projects.<\/p>\n
He, however, said for financial inclusion or providing services across geographies and consumer segment, there is a need for many players.<\/p>\n
\u201cWe need large banks and we need small niche players so that all the needs of the economy can be satisfied and served,\u201d he said.<\/p>\n
To a question on the issue of the waiver of interest on deferred payments of instalments for loans during the moratorium period announced due to the coronavirus lockdown, Puri said no one is asking banks to waive interest.<\/p>\n
\u201cBank ko toh koi nahi bol raha hai waive karne ko. Banks se toh contractual obligation, tum ko dena padega. (Banks are not being asked to waive interest. Customers are liable to pay interest to banks as there is a contractual obligation). \u201cMera dandha hai (This is my business). I am not a charitable institution and I am responsible to multiple people,\u201d Puri said.<\/p>\n
On Wednesday, the Supreme Court took note of the Centre\u2019s alleged inaction and asked it to clarify its stand within a week on the waiver of interest for deferred payments of instalments for loans during the moratorium period announced due to the coronavirus lockdown.<\/p>\n
A bench headed by Justice Ashok Bhushan said the Centre had not made its stand clear on the issue despite the fact that ample powers were available with it under the Disaster Management Act and was \u201chiding behind the RBI\u201d.<\/p>\n
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