Anand Rathi: Covid-19 Related Stress - Key Parameters By Kamath Committee
A pedestrian walks past the Reserve Bank of India (RBI) building in Mumbai, India, on Tuesday, March 3, 2020. Photographer: Kanishka Sonthalia/Bloomberg

Anand Rathi: Covid-19 Related Stress - Key Parameters By Kamath Committee

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Considering the slowdown in the economy and stress across industries from the Covid-19 pandemic, the Reserve Bank of India-appointed Kamath committee recommended 26 sectors would require restructuring.

We believe this would offer short-term relief to banks which were facing sharp deterioration in asset quality once the moratorium was lifted.

Though this is a step in the right direction to address a major banking sector problem, however, given the track-record of banks in corporate restructuring, we believe, this would only postpone the stress.

Click on the attachment to read the full report:

Anand Rathi India Financials Update.pdf

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