Easing working capital will help banks give special treatment to impacted sectors: Sunil Mehta

RBI has used heavy artillery to fight the war but now it is on the banks to do a quick transmission and start lending again. Do you think banks this time will go out of the way to transmit rates and start lending again?
First of all, kudos to the governor of RBI for coming out with a very timely and comprehensive package. It will not only provide liquidity support to the banks but will also enable them to reduce their rates because of the availability of the funds at a lower rate. That is one aspect. Another aspect is, this will definitely provide an enabler to most of the banks in meeting the requirements of their customers. Banks have been allowed to work out their working capital assessment afresh in case of a particular industry or a particular sector is impacted by COVID-19. That will provide them a lot of leverage in giving it differentiated treatment to each and every industry depending upon its impact of COVID on them.