SBI closely monitoring MSME loan accounts: MD

Mumbai, July 17 (KNN) State Bank of India (SBI) is closely monitoring Micro, Small and Medium Enterprise (MSME) loan accounts which opted for repayment moratorium, said Dinesh Kumar Khara, Managing Director said on Friday.

This close monitoring is aimed at assessing the possibility of these accounts slipping once the six-month moratorium ends on August 31, 2020.

While speaking at a seminar organised by industry body ASSOCHAM, Khara said, ''As MSMEs are facing cash-flow issues, banks could also consider restructuring their accounts in due course based on the Reserve Bank of India’s (RBI) evaluation of the system-wide situation.''

The RBI has allowed a six-month moratorium, beginning March 1, 2020, on term loans, easing of working capital financing, and deferment of interest on working capital facilities.

Khara also said the bank is quite open to the request of rehabilitation and restructuring of loans, adding, ''some sectors of the economy like hospitality, travel and tourism would need hand-holding.''

Meanwhile, Sunil Mehta, CEO of the Indian Banks' Association (IBA) said that the association is working on bringing ease of banking on the lending side and is also focussing on swift decision making amid the COVID-19 crisis.

He further stated that member banks are working on digitisation of loan products so that human intervention is minimised in the process of loan.

''Ease of banking is one of the key agenda of IBA and bankers are thinking through this. Bankers have to think about swifter delivery. Banks are converting this pandemic in opportunity for digitisation of their loan products...6 months from now you will find more digital lending products and help in ease of banking," he added.