Even as many banks have reported huge increase in stressed assets of their loan portfolios due to the ongoing social disturbances in Manipur since May 3, a Special SLBC meeting has decided that banks will provide relief measures by way of rescheduling of existing loans and sanctioning of fresh loans as per the emerging requirements of all loan borrowers (Agri, MSME and other retail loans).
A release from the Finance Department, signed by Anna Arambam, Director (Institutional Finance), Manipur stated that the ongoing social disturbances since May 3, 2023 have adversely affected all sections of the society and economy in the state. Many banks have reported huge increases in stressed assets of their loan portfolios.
Keeping in view the present situation, the Government of Manipur issued Notification No. OTH-IF- 2/3/2023-DIF-DIF dated June 21, 2023 whereby relief measures may be taken up under RBI's (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018, the release said.
As a follow up of the said notification, a Special SLBC meeting was convened on July 1, 2023 and it was decided that banks will provide relief measures by way of rescheduling of existing loans and sanctioning of fresh loans as per the emerging requirements of all loan borrowers (Agri, MSME and other retail loans), the director said in the release.
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She further stated that banks have been instructed to extend the moratorium period up to 12 months from the date of implementation of the rehabilitation/restructuring measures and for retail loans under P-segment (Personal/Pension/Vehicle/Housing loans etc), EMI repayment may be deferred by 12 months.
Those borrowers, whose repayment capacity have been severely affected due to disruption of economic activities and loss/damage of economic assets, including agriculture and allied activities may contact the concerned banks for availing the moratorium and other rehabilitation/ restructuring measures, the director of institutional finance said.
The rehabilitation/restructuring measures will not be applicable to those accounts which have been classified as NPA at the close of business as on May 3, 2023, she added.
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Anna Arambam also stated that the opening of bank branches and ATMs was also reviewed by the Chief Secretary on Thursday. Out of a total of 241 bank branches in the State, 218 have been opened as on 06.07.2023. Efforts are being made to make the remaining 23 branches operational at the earliest, she said.
She added that out of 396 ATMs, 320 are functioning. Banks were requested to make all-out efforts to ensure that the remaining 70 ATMs are also made functional. The Government conveyed its readiness to extend all possible assistance in this matter, she said.
