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Although National Bank of , Bank of India and Bank of Vadodah announced new lines for struggling companies, they expect a series of defaults for small and medium-sized companies as the fiscal year approaches. United Bank and Bank of India have announced similar measures to increase working capital .

They also asked the Reserve Bank of India (RBI) to postpone the classification of non-performing assets (NPA) for three months (from 90 days of unpaid loans). If a loan is not repaid for 90 days, it will be a bad debt for the bank and provision will be made. Alleviate cause Locked, the company asked And the government's six-month working capital so they can pay off suppliers and employees.

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to Prabal Banerjee Directors of Bajaj Group, headed by Shishir Bajaj, said that if the Reserve Bank of India does not allow the principal repayment period to be set at two years and the interest payment extension to be set at 6 to 1 year, defaults on bonds and loans will double. "The slowdown will have a huge impact on ' non-performing assets," Banerjee said.

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Bankers see this as a necessary step, even if it could raise concerns about moral hazard.

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Rating agencies are particularly important. With the fiscal year ending March 31, small and medium-sized companies are likely to default heavily, and rating agencies will have to mark them as "default" levels. Rating agencies follow the "one day, one rupee" principle, which states that even if the default value is one day or one rupee, the question must be marked as "default." In the event of a default, the "default" rating must not be revoked for at least six months.

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"The problem now is that cash flow should be protected and Companies must be provided with loans to keep their cash flow intact so that they can continue to salaries. If people don't get paid, it will do double damage to the economy. "

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Rating agency executives said the Reserve Bank of India (RBI) or the Indian Capital Markets Supervisory Authority (Securities Exchange Board) had not made any communication on the issue.

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With deadlines approaching and redemption pressures facing, some companies are withdrawing liquid funds held in mutual funds (MF). According to industry sources, the debt MF plan withdrew about Rs 1 trillion in investments over the weekend.

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A fund manager said: "As daily operations are disrupted, companies find it challenging to get funding from banks, so they can only make liquid investments in order to meet working capital and debt obligations."

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Concerns over the loss of industry assets have prompted financial institutions to write letters to the Reserve Bank of India (RBI) through the repurchase window for corporate bonds and commercial paper to increase the credit line to Rs 1 trillion.

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At the end of February, the average investor assets of liquidity management was Rs 4.9 trillion, which was mainly used by companies and institutional investors to meet short-term liquidity needs.

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At the system level, liquidity has begun to dry up, which is reflected in the surge in domestic bond market yields. Yields in the short-term bond market rose 100-150 basis points this month.

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The massive sell-off by overseas investors tightened this austerity, selling debt securities worth Rs 54 crore in March.