Piramal Ent., Tata Power, JSW Steel seek loan moratorium

Piramal Enterprises, Tata Power and JSW Steel are some of the large corporates seeking a loan moratorium from their lenders, as provided by the Reserve Bank of India.

Ratings agency ICRA, in a statement listed about 328 companies rated by the agency and which have applied for the loan moratorium.

A few other companies which have sought the moratorium include TAJGVK Hotels & Resorts Limited, Tata Power Renewable Energy, GMR Hospitality and Retail, GMR Hyderabad Aviation SEZ and GVK Jaipur Expressway.

ICRA said the list includes entities that have sought a moratorium on payments as part of the COVID-19 - Regulatory Package announced by the Reserve Bank of India (RBI) on March 27 and where the approval from the lender was received either after the original due date or is still pending to be received.

Some of the NBFCs which have sought the nod for loan moratorium include CreditAccess Grameen Limited, Indostar Capital Finance Limited and Piramal Capital & Housing Finance.

The rating agency noted that missed payment by these entities even in the case of pending formal approval from the lender prior to the original due date is not considered as a default.

"It may be noted that for the entities that are yet to receive an approval for the moratorium from their lending institutions, if the same is not received in due course, ICRA would review its stance on default recognition," it said.

The central bank had last month allowed a three-month moratorium on payment of instalment in respect of all term loans outstanding on March 1, 2020.

"All commercial banks, co-operative banks, all-India financial institutions, and NBFCs are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020," RBI governor Shaktikanta Das had said.
-IANS