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Small cos get hit most by lockdowns, may default

“While it is too early to comment on the extent of the impact on the asset quality of retail loans due to the rising Covid cases, there is reason to be cautious. After the nationwide lockdown last year, we had witnessed a severe drop in collections for most asset classes though the availability of a moratorium provided a breather from an NPA-recognition perspective,” said Abhishek Dafria, VP and head (structured finance) at Icra.

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