India’s Top Court Extends Relaxation of Rules for Bad Loans

India’s top court extended the easing of rules over the classification of non-performing loans until further notice, delaying the disclosure of how much bad debt banks hold, Bloomberg News reported. The three-judge bench headed by Justice Ashok Bhushan on Thursday gave the government two weeks to come up with relief measures for virus-hit businesses and said such a decision had to be put before the court for consideration. It also reiterated that banks must not classify any loans as bad if they were performing at the end of August until further order. The court said the government and central bank must also clarify their views on requests to waive additional interest on deferred installments during the moratorium, and put a temporary halt on credit rating downgrades so an “appropriate order” can be issued at the next hearing on September 28, according to the order published on the court’s website. Read more