The incidence of customers shifting their balances from non-banks to banks has become particularly pronounced in FY21, as the repo-linked pricing regime and huge surplus liquidity allowed banks to reduce interest rates much faster than non-banks could.
However, since the scheme is designed to disburse loans in two tranches, private power producers want the state to avail the second tranche of the loan at the earliest so that the balance dues can be cleared as soon as possible.
Foreign software suppliers will breathe a sigh of relief with the long uncertainty finally reaching a well-founded outcome in their favour,” said Ravi Mahajan, partner at Ernst & Young LLP.