SBI seeks more relaxation of S4A guidelines

Moneycontrol BureauPremier lender State Bank of India is believed to have wanted relaxation of norms in the Scheme for Sustainable Structuring of Stressed Assets (S4A), reports Mint. In a letter to banking regulator RBI, the bank has sought changes to the reform that allows banks to split the debt of the company into sustainable and unsustainable halves.According to a person who spoke to the newspaper, turning a company around would be well-nigh impossible unless recast plans allow a cut in interest rates, lenient repayment period or extra funding for borrowers. Some of the allowances being request for were put forth before the RBI, said the source, adding that the clarifications that followed didn't include them.As per the norms issued in June, RBI had ruled out fresh moratorium offered on principal or interest payment in cases where S4A has been invoked.