The second wave adversely affected the recovery of installments of government banks – Navshakti

The second wave adversely affected the recovery of government banks

New Delhi: The second wave of the Corona epidemic has adversely affected the recovery of public sector home loans, installments on personal loans and credit card bills. Rajkiran Rai, president of the Indian Banks Association, said state-owned banks were hit the hardest by the second wave of corona epidemic in May.

It was not possible to give exact figures on the extent of the losses incurred by the banks, but Rai said the recovery in May had had a major impact. He informed about this in a press conference held on Sunday. Compared to the first wave, the second wave had the biggest impact on home loans of government banks, installments of personal loans as well as recovery of bills on credit cards, Rai said.

Recovery improved in April 2021 compared to April 2020. However, it is often not possible to release month-end figures. Having said that, Rai said that he had to face many difficulties in recovery in May. Meanwhile, banks have also come up with restructuring schemes for customers to recover interest on loans or EMIs, he said. Rai also pointed out that the government had introduced a Rs 3 lakh crore scheme for micro, small and medium enterprises under the Emergency Credit Line Guarantee Scheme last year. He also said that out of Rs 3 lakh crore, Rs 2.54 crore has been disbursed so far.

Tags: Corona second wave, New Delhi, Rajkiran Rao President Indian Banks Association, Recovery of government banks

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