The government and the RBI are considering giving relief to banks, aviation and other hospitality sectors hit by the coronavirus outbreak by relaxing bad loan classification rules, a source familiar with the matter said.

The government is discussing increasing the timeline by 30-60 days to classify a loan as a bad loan, the source said. At present, a debt not serviced for 90 days is classified as a bad loan.

Meanwhile, two state-owned banks — Bank of India and Central Bank of India — that were aiming to raise funds to meet growth targets have shelved their plans because of the disruption to markets caused by coronavirus.

Bank of India plans to raise $269 million via a qualified institutional placement, while Central Bank planned to raise $67 million this quarter.