RBI Governor Shaktikanta Das met heads of credit rating agencies and sought their assessment of the macroeconomic situation and their outlook on various industries, including the financial sector, the central bank said in a statement
Bengaluru: As the COVID-19 pandemic continues to suppress Indian economy with its tentacles, RBI Governor Shaktikanta Das met heads of credit rating agencies and sought their assessment of the macroeconomic situation and their outlook on various industries, including the financial sector, the central bank said in a statement.
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The RBI Governor met managing directors and chief executives of credit rating agencies (CRAs) through video conferencing. The meeting was also attended by the deputy governors and other senior officials of the Reserve Bank of India (RBI).
During the meeting, among other matters, agencies' assessment of the macroeconomic situation and outlook on various sectors, including the financial sector, was discussed. Other issues discussed included perspectives on the overall financial health of the entities rated by the CRAs and major factors that affect credit ratings in current context.
The RBI also sought feedback on ways to further strengthen the rating processes and engagement with key stakeholders.
Last month, the RBI announced a slew of measures to revive a sagging economy. Here’s a look at it.
Moratorium extended: A further three-month extension up to August 31, 2020 on the following:
1. Term loan instalments
2. Deferment of interest on working capital
3. Easing of working capital financing requirements by reducing margins
4. Exemption from being considered as defaulter in supervisory reporting and reporting to credit information companies
5. Extension of resolution for stressed assets, asset classification standstill by excluding moratorium period of three months.
Growth Outlook: On economic growth in the current fiscal, the RBI projected negative growth with a pick up in growth impulses in second half. However, these depend on the trajectory of the pandemic.
Inflation Outlook: Headline inflation may fall below the RBI's medium term target of 4% in third or fourth quarter of the current fiscal.
Demand & Supply: The governor said that the private consumption, which comprises 60 per cent of the GDP, has taken the biggest hit. Both the demand compression and supply disruption has taken a toll on the economy, the governor observed.
Foreign trade: Line of credit of Rs 15,000 crore for 90-days with roll over of up to one year so as to enable it to avail US dollar swap facility.
SIDBI: The special refinancing facility of Rs 15,000 cr to SIDBI at repo rate for 90 days for lending & refinance operations has been further rolled over for another 90 days at the end of initial 90 days period.
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Last Updated Jun 11, 2020, 5:14 PM IST