Udayavni Special

COVID-19: Shopping centres’ body seeks moratorium on loan repayments till March 2021

Team Udayavani, Apr 23, 2020, 6:40 PM IST

Mumbai: Shopping centres are heavily impacted by the coronavirus outbreak and the subsequent lockdown which may result in bank loans of over Rs 25,000 crore turning bad, an industry body said on Thursday, seeking relief measures from the Reserve Bank.

The Shopping Centres Association of India, which claims to be a top enabler of organised retail in the country by representing thousands of shopping centres, has also written to RBI Governor Shaktikanta Das seeking to extend the moratorium on loan payments at least till March 2021 and also loan recasts for the industry players.

It can be noted that shopping centres and malls, which tend to attract a lot of crowds, have been shut since mid-March, much before the lockdown was announced and if the social distancing strategies continue post lockdown as well, such facilities are unlikely to open.

Apart from the extension in the moratorium, the association has also sought a one-time restructuring of loans on lower interest rates, working capital finance facilities and non-classification of the accounts as NPA till March 2021 in the letter sent on Tuesday.

It said the industry provides direct livelihood to over 12 million people and many more if we were to consider the indirect impact, as industries like entertainment, fashion, food and beverages are served by it.

Even as the facilities are shut, the industry is incurring fixed costs salaries, facility maintenance charges, utilities and ongoing routine expense even as it is not getting any rental revenue from clients, it said.

Stating that the banking industry has a Rs 70,000 crore exposure to the lease rental discounting instrument, it said banks have now begun to enforce the contractual obligations by directing the mall owners to deposit rental incomes in escrow accounts for April as well.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

NCB suspends 2 IOs for no show in court in Bharti Singh case

Ex-Punjab CM Parkash Singh Badal returns Padma award over farm laws

Kerala CM calls for high-level meeting to tackle rain fury

Criminal networks could try to sell fake COVID vaccines physically and on internet, warns Interpol

Board exams: CISCE writes to all CMs to allow partial reopening of schools from Jan for class 10, 12

Rajinikanth to launch party in Jan, outfit to fight 2021 polls

Amarinder Singh meets Amit Shah; appeals to Centre, farmers to resolve impasse soon

Related Articles More

Committed to engaging with Indian govt to make vaccine available in country: Pfizer

Vaccine 1st puts spotlight on German pharma company BioNTech

K’taka COVID-19 update: 1440 new cases, 983 discharges, 16 deaths on Dec 1

Italy plans 202 million COVID-19 vaccine doses

US panel to decide who should get the first COVID-19 shots


Pro-terror graffiti case culprits will be arrested soon: Basavaraj Bommai

Meal of Bakasur : Hotel Fish Campus Udupi | Udayavani

Things You Should Know When Starting A Business | Profitable Business Ideas After Lockdown

Mangalore Boat tragedy: We’re with families of deceased, says Kota after announcing Rs 6 lakh compensation

Mangaluru boat tragedy: Body of another fisherman recovered

Latest Additions

Renowned saxophonist Kadri Gopalnath’s memorial to be inaugurated on Dec 6 at his hometown

Enterprises believe COVID-19 to have bigger impact than 2008 downturn: Study

Akhtar submits statement in defamation plaint against Kangana

NCB suspends 2 IOs for no show in court in Bharti Singh case

MIT researchers create system that designs custom robots based on terrains

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.