Banks seek extension of loan recast window till March 31: Report

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Banks have requested an extension of restructuring window outlined by the KV Kamath committee, to March 31, 2021.

The Indian Banks' Association (IBA) has asked the Reserve Bank of India (RBI) to keep the loan recast window open after the current expiry on December 31, The Economic Times reported.

Moneycontrol could not independently verify the story.

The Kamath panel had in September submitted a report laying out guidelines for one-time debt restructuring in 26 stressed sectors.

Also read: Coming, a mega loan recast | What does this mean for banking industry?

"A request has been made to the RBI to extend the recast window by another three months," a source told The Economic Times.

"Bank books are very opaque currently since several borrowers are sitting on the fence and awaiting a positive verdict from the apex court," the source added.

In November, CRISIL said as many as 99 percent of companies, excluding MSMEs, rated by the agency are unlikely to opt for the RBI's one-time debt restructuring, CRISIL said the finding was based on a preliminary analysis of 3,523 such non-MSME companies.
The Supreme Court has directed banks not to declare accounts that default after August 31 as non-performing assets (NPAs) until further orders. The central bank's six-month loan moratorium had ended after August 31.