Restructured loans may get standard asset tag: Sources

The Reserve Bank of India (RBI) is likely to introduce two years timeline for restructured assets to be classified as standard assets, sources told CNBC TV18. However, if the loan account slips even after the upgradation, it would be treated as restructured account again.

March 02, 2012 / 15:54 IST

The Reserve Bank of India (RBI) is likely to introduce two years timeline for restructured assets to be classified as standard assets, sources told CNBC TV18. This means, restructured assets can be treated as standard assets after two years. However, if the loan account slips even after the upgradation, it would be treated as restructured account again.

Earlier, the RBI had revised its provisioning norms in May, 2011. Accordingly, the restructured loans classified under the standard category will fetch a provision of 2% in the first two years from the date of restructuring. In case of moratorium on payment of interest and principal after restructuring, two per cent provision has to be maintained for the period covering the moratorium and two years thereafter, RBI had said.

In a bankers

first published: Mar 2, 2012 01:51 pm

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