Banks and non-banking financial companies (NBFCs) say collection efficiency could decline to 75-80% in the first quarter. Everywhere there is a collection problem, but nowhere does the government make a general statement banning banks from recovering the loans. Such a statement by the Kerala chief minister will have an impact on the collection," a top banker said on condition of anonymity. While the latest measures do not stop banks from online loan collections, cash-based recovery will be hit the most. Maharashtra is expected to extend its lockdown till the end of May.

Source: Mint May 10, 2021 18:11 UTC