SBI had on September 21 released two sets of FAQs on its resolution framework for stressed loans during the COVID-19 pandemic.
State Bank of India (SBI) Chairman Rajnish Kumar on September 22 said the lender has not seen much demand so far for corporate loan restructuring under the resolution framework.
Kumar said there has not been much "clamour" or "rush" for a restructuring of corporate loans, and not much rush in the personal loans segment either, according to a Financial Express report.
"From the banking side, what I am seeing there is not too much demand (for corporate loan restructuring). It may be contrary to what the public discourse is, but as of now, the reasons could be many. One is of course a lot of clean up has already happened. In the capital, a lot of deleveraging has also happened. And more than the banks, corporates are reluctant to go for restructuring. That is the feeling I am getting," Kumar said, as quoted by the paper.
Kumar made the comments during the 13th Banking Colloquium organised by the Confederation of Indian Industry (CII).
"So, in such a scenario the need for the restructuring would be more from the lower end of the corporates or the upper end of the MSME," Kumar added.
SBI had on September 21 released two sets of FAQs on its resolution framework for stressed loans during the COVID-19 pandemic. The lender answered customers' queries on loans in the personal and non-personal segments.Also Read: What is the actual COVID impact on bank NPAs?