Coronavirus pandemic | Lockdown period must be excluded from 90-day NPA timeline: Bombay HC
The Bombay High Court (HC) on April 13 ordered that the lockdown period must be excluded while classifying a loan as a non-performing asset (NPA), LiveLaw reported.
A bank classifies a loan as an NPA if the repayment is not made within 90 days of the due date.
The Bombay HC passed the interim order while hearing petitions filed by real estate firms Transcon Skycity and Transcon Iconica against ICICI Bank.
On March 27, the Reserve Bank granted a three-month moratorium on loan installments due between March 1 and May 31. The move was aimed to provide depositors some relief during the COVID-19 outbreak, whose loans would otherwise have been classified as NPAs.