India to waive certain interest levies on loans

AGRA (India), Oct 04 (Reuters): The Indian government has told the Supreme Court it will waive certain interest levies on loans up to 20 million rupees ($272,888) under a Covid-19 support plan, a legal filing showed, in a move that will bring relief to millions of borrowers.

While the government did not disclose the impact on the banking sector, an analyst at credit ratings firm ICRA estimated it will cost New Delhi a maximum of 50-70 billion rupees ($682 million-$955 million).

"We expect the impact to be minimal on profitability of lenders," said ICRA's Anil Gupta.