Reuters reports that Fitch Ratings said that relief measures announced by India's central bank last week to help lenders and borrowers during the new devastating wave of COVID-19 infections will only delay the stress for financial institutions.

The Reserve Bank of India (RBI) rolled out last Wednesday a slew of measures including a loan restructuring scheme to help lenders tide over mounting bad loans and give some borrowers more time for debt repayment.

Fitch said these measures would provide some relief to financial institutions over the next 12-24 months but at the expense of delaying the recognition and resolution of underlying asset-quality problems.

The central bank may unveil more measures to support the financial sector, like credit guarantee schemes or a blanket moratorium, if indications of economic stress mount, the ratings agency said.

Last week, S&P Global Ratings said its outlook on India's sovereign debt remained stable, even though surging cases could threaten the economic recovery it had seen so far.