Financial sector stocks moved higher by up to 6 percent in late noon trade today, bouncing back 13 percent from day’s low, after the Supreme Court gave three days to Finance Ministry, Reserve Bank of India (RBI) to decide on moratorium period interest.
According to an IANS report, the top court, during the hearing, indicated that it was not considering a complete waiver of interest, but was only concerned that postponement of interest shouldn't accrue further interest on it.
The Supreme Court on Friday asked Solicitor General Tushar Mehta to convene a meeting of the Finance Ministry and RBI officials over the weekend to decide whether interest incurred on EMIs during the moratorium period can be charged by banks. A bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul, and M.R. Shah queried Mehta as the court was concerned since the Centre has deferred loan for three months, the IANS report said.
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