RBI extends debt restructuring for MSME, ups gold LTV ratio
Published On: Thursday, August 6, 2020 | By: Team KnowMyStock
Financials and realty stocks soared in the afternoon session today after the RBI, in its second bi-monthly policy for the financial year 2020-21 (FY21), announced measures to support NBFCs, HFCs, corporate debt market, debt MF, agriculture and backward districts (via priority sector loans). Besides, it announced a relaxation on the loan-to-value (LTV) ratio for gold loans. "It has been decided that stressed MSME borrowers will be made eligible for restructuring their debt under the existing framework, provided their accounts with the concerned lender were classified as standard as on March 1, 2020. This restructuring will have to be implemented by March 31, 2021," RBI governor Shaktikanta Das said.
Consequently, the Nifty Bank index surged to day's high, up 1.7 per cent, to 21,869 level on the National Stock Exchange at 12:50 pm. The index, however, ended 0.6 per cent higher. Nifty Private Bank and Public Bank indices, meanwhile, surged 1.65 per cent and 0.80 per cent, respectively during the day but ended 0.7 per cent higher and 0.3 per cent lower, respectively. Among individual stocks, HDFC Bank surged 2.4 per cent to Rs 1,052, while IDFC First Bank, ICICI Bank, State Bank of India, and Bank of Baroda were up in the range of 1-2 per cent. Besides, RBL Bank, IndusInd Bank, Federal Bank, and Axis Bank gained between 0.5 and 0.8 per cent.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
