The Supreme Court has given its judgment on mortgage moratorium case beneath which it refused the extension of a moratorium and has acknowledged that waiver of curiosity is just not attainable.
Three issues that the courtroom stated no to are very constructive for the banking sector usually. It stated no to an additional moratorium, no to full curiosity waiver, and no to sector-specific forbearances that was sought by the actual property and sure different sectors.
Now, one of many uncertainties was on the (revenue & loss) P&L of banks. They used to present a professional forma NPA after which NPA after together with the Supreme Court’s munificent. Now, not less than there will probably be a clear set of NPA numbers.
What the courtroom didn’t rule out is curiosity on curiosity – that it stated cannot be charged as a result of these are irregular occasions that sounds to them as penal curiosity and subsequently that needs to be refunded.
CNBC-TV18’s Latha Venkatesh has extra particulars.
