INSUBCONTINENT EXCLUSIVE:
MUMBAI: Hotels, tourism and commercial real estate may be the worst-hit sectors amid the Covid-19-driven lockdown, according to experts,
causing a reversal of sorts since this cluster contributed the most to the credit growth of banks until February this year.
While the
tourism, hotels and restaurants segment saw a 16.9% year-on-year increase in loans to Rs 45,000 crore in February, commercial real estate
credit expanded 15.1% to Rs 2.29 lakh crore, according to the latest Reserve Bank of India (RBI) data.
These sectors are now prone to
management services at Prabhudas Lilladher
sectors where rating downgrade pressure would likely be higher are hotels, along with aviation, cut and polished diamonds, retail and
increased 7.3% year-on-year in February, compared to 13.5% a year ago
Some segments, including consumer durable loans and unsecured loans, posted higher growth than they did last year
But only retail bank loans recorded higher growth than tourism, hotels and restaurants during the period, 17% versus 16.7% a year
ago.
Rating agency Crisil has reviewed 120 companies most affected by the lockdown, belonging to sectors such as airlines, hotels, tourism,
malls, organised bricks-and-mortar retail, multiplexes and restaurants.
Experts said that although the RBI has already offered moratorium on
bank loan repayments, it would have to do more to help alleviate the impact of business freeze.
