In March, the Reserve Bank granted an extension to repay the loan for three months till May 31, 2020. This period was later extended to August 2020.
Mumbai: SBI Card is restructuring the credit card dues of customers who are unable to pay it even after the moratorium. The company is turning this arrear into a loan. Interest is reduced by 70 percent. It has also promised customers that if the Supreme Court grants any relief on interest in the Moratorium, it will be adjusted in the remaining installments of the loan.
SBI Card MD and CEO Ashwani Kumar Tiwari said that the interest to be revolved on the credit card balance is above 40 per cent. If the card holder is late in making the payment then this balance will continue to increase.
He told that his Rs 7,083 crore was stranded under the Moratorium in May. This figure has come down to Rs 1,500 crore now. Many customers are not paying the first three months due to deferment given to repay the loan. The company is treating them as a ‘standard’ account like the entire industry. However, since the expiry of the deferment, SBI Card has taken the initiative to register customers under the second deferment scheme. They are being asked to enroll in ‘Easy Pay’ option.
Tiwari said, “We are asking customers to choose the scheme as it will not affect their credit history.” Many customers are not satisfied with this. He feels that his interest can be forgiven
. Where expenses on travel and IRCTC have been lost. At the same time, this has been offset by online spending. Online expenses have reached 105 percent of the pre-Kovid level.
Explain that the Reserve Bank had given an extension in March for repayment of the loan for three months till May 31, 2020. This period was later extended to August 2020. Tiwari said that the process of restructuring is on. A large number of accounts have to be registered. The company will have to make a provision of 10 percent for this according to the RBI guidelines.
Apart from this, there are some accounts which will definitely fall under the purview of NPA (Non-Performing Asset) due to the epidemic. Additional provisions will need to be made for such accounts. There is uncertainty about the future. We need to be cautious about such accounts. The promoter of this company is State Bank of India (SBI). The company’s net profit in the April-June quarter of the current financial year increased by 14 percent to Rs 393 crore.
Source: economictimes.indiatimes.com
