Banks need to pass on the benefits quickly: ITF

"We would like to thank RBI and the Union ministry of finance for the various steps taken to provide adequate liquidity in the banking system, facilitation of bank credit and regulatory measures to reduce the financial stress for the corporate segment," ITF convenor Prabhu Dhamodharan said in a statement.

ITF had undertaken a survey of 205 of its member companies representing the entire value chain of textile manufacturing covering bank exposure in excess of ₹3,500 crore. The survey indicates that while the steps taken by the government and RBI are very proactive, the last mile implementation of the same could be hastened.

"As per our survey, while 19 per cent of the applications for additional working capital limits have been approved by the bankers, 48 per cent are under process and 31 per cent have not been given a reply for their applications. We well understand the difficulties faced by banks in the current situation with less working hours. However, we request and await the banks' response at the earliest," Dhamodharan said.

Post the lockdown period, availability of additional working capital limit will be critical for liquidity management of textile companies to restart the operations. Dhamodharan requested the finance ministry and RBI to "please advise banks to expedite the process to ensure quick recovery of business post renewal."

Fibre2Fashion News Desk (RKS)