Tarun Bhatia, Managing Director and Head of South Asia in the Business Intelligence and Investigations practice of Kroll, a division of Duff & Phelps, recently shared his views with The Economic Times on how financial institutions will need to redraw their lending models and revisit their asset liabilities.
Tarun said, “From our interactions with banks, they seem to be open to the idea of lending, but corporates or small and medium enterprises (SMEs) are not seeking growth capital at this stage. The demand for loans will take some time to revive and when it does, the banks, as custodians of public money, will have to evaluate the risk and lend accordingly.”
Tarun further added that the system cannot expect banks to lend with closed eyes as they will eventually be, and should be, held accountable. As small businesses look for a lifeline, banks may continue to be what they have been for a number of years now—circumspect.
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