SBI chairman Rajnish Kumar suggests to avoid high debt burden

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State Bank of India (SBI) chairman Rajnish Kumar has said that there are a lot of uncertainties in the current situation. In such a situation, small and medium enterprises should work wisely and avoid excessive debt burden.

Avoid high debt burden

She made the remarks while addressing a program organized by FICCI Ladies Organization through video conference. He said that if there is any chronic problem with the undertakings then they should avoid taking short term loans.

Kumar, while addressing the topic of 'Rescuing the MSME Sector Post Kovid-19', said, "Under such uncertain circumstances, all enterprises will need more capital to operate, which the banks will provide." But in such a situation, the enterprises should avoid taking more loans using intelligence because even after such circumstances they will have to repay the loan and will also get interested from above. ”

However, he also said that in such a difficult time there is no problem in raising the loan if the business returns to track in the next six months to one year due to more capital to operate.

Banks will not pay any dividend

The Reserve Bank of India (RBI) on Friday gave relief to the banks, saying that they are exempted from dividend payments due to financial difficulties faced by the Coronavirus epidemic.

Reserve Bank Governor Shaktikanta Das made several announcements to ease the increasing pressure on the financial sector. He said that the 90-day rule to declare a loan as a stuck debt will not apply to the prohibition on the repayment of the existing loan instalment of banks. He said that banks have been given relief in view of the financial pressure created by the Kovid-19 epidemic.

Three months exemption for borrowers

It is noteworthy that the borrowers have been given an exemption for three months on the instalment payment of the loan of the banks. Due to this exemption, banks' loans will not be declared as NPA.

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