The bank, which has been witnessing asset quality stress reflective of the gloom in the economy, has a restructuring pipeline of Rs 2,000 crore at present, he said.
The proposal comes amidst allegations of banks using corporate debt restructuring (CDR) mechanism - under which the repayment tenor of a loan is delayed - to take care of a borrower's temporary needs in times of stress.
Tulip Telecom hopes tosave Rs 250 crore worth of interest post restructuring of debt and hopes to soon reach a settlement with FCCB holders.
Indian Overseas Bank, whose net profit in January-March tumbled 89 percent on year on sharp spike in provision expects the non-performing assets to come down going forward on restructuring of loans.
In an interview to CNBC-TV18, Ananda Bhoumik of India Ratings and Vaibhav Agrawal of Angel Broking spoke about thier outlook on the banking sector and the road ahead.
Kurian Chandy, CFO, Kamat Hotels, says that the hotel plans to undertake corporate debt restructuring (CDR) programme to lower it debts. The hotel chain is finding it difficult to service its debt due to rise in interest rates and dipping occupancy level.
Indian banks are yet to get rid of financial bruises. In 2012-13, their profitability is likely to â€œdecline sharplyâ€ due to two reasons: stricter regulatory requirements and stress assets, according to a survey done by CII.
UP Power to recast loans worth Rs 15000 cr under centre's Financial Restructuring Plan.
The Corporate Debt Restructuring (CDR) cell has seen whopping 35% jump in loans being approved for recast in current fiscal indicating the continuing liquidity tightness among incorporations.
Pioneer Embroideries gained as much as 10 percent on Tuesday as the board will consider issue of preference shares on Friday.
Shares of telecom services and IT solutions provider Tulip Telecom were locked at 5 percent upper circuit on Monday after media reports that banks may approve the Rs 1800 crore loan recast package by the end of this month.
Shares of country's largest wind turbine supplier Suzlon Energy rose more than 3 percent in early trade on Monday as the company said would issue 78.37 crore equity shares at Rs 18.51 a share, on a preferential basis to its CDR (corporate debt restructuring) lenders.
Suzlon Energy, one of the world's largest wind turbine suppliers, fell as much as 44 percent intraday to touch a new 52-week low of Rs 13.55 on Thursday after promoters raised funds for corporate debt restructuring (CDR) via stake sale.
Deepak Narang, ED, United Bank of India says that the bank has reduced corporate debt restructuring support to companies with low profitability to curtail the rise of NPLs. The bank is fully provisioned against its exposure to Kingfisher thanks to the RBI‘s permission which allowed the bank to make provisions over two quarters, he told CNBC-TV18.
Besides the banking sector, the economy as a whole has lost in terms of other creditors, like tax authorities, oil companies, airport authorities and of course employees and shareholders.
Debt-laden Suzlon Energy, which last month got formal approval from banks to restructure its loans, says it can raise about USD 0.5 billion from selling non-critical assets. However, Kirti Vagadia, its CFO, maintained that there is no plan to sell its German unit REpower, which is among the fastest growing in the industry.
Praveen Sood, Group CFO, Hindustan Construction Company (HCC), says that the company has put special thrust on managing the working capital and this quarter has been good as far as working capital is concerned, as there is no further pressure on the working capital.
In an interview to CNBC-TV18, SP Tulsian, sptulsian.com takes a positive call on Suzlon. "If somebody can keep a view of 2-3 years, it can give a 200-300 percent return, but yes, in the near-term for 2-3 months that stock should settle at about Rs 24-25 with very minimal downside risk from hereon," adds Tulsian.
Debt-laden Suzlon Energy on Thursday said that the empowered group of Corporate Debt Restructuring (CDR) Cell has given formal approval to its proposal to restructure domestic debt.
The promoters of Suzlon Energy, led by chairman Tulsi Tanti, on Wednesday sold 3.75 crore shares amounting to about 2.11 percent stake in the wind turbine maker for Rs 63 crore. This stake sale is to facilitate its corporate debt restructuring admitted by banks last month.
The prospect of revival for the debt-ridden Suzlon Energy brightened. Finally, banks admitted the company's 11,000 crore loans in the corporate debt restructuring (CDR) cell. This means, lenders will now chalk out a final bailout plan in consultation with the management and thereby try normalise its delayed repayment schedules.
Lenders have approved debt-ridden wind turbine maker Suzlon Energy to debt restructuring process, and may even offer it a fresh line of credit, sources told moneycontrol.com on Tuesday.
The finance minster's insistence on consolidation was not shared by bankers who believe that the sector's top priority remains asset quality. However, in an exclusive interview with SBI Chairman Pratip Chaudhuri, CNBC TV18‘s Gopika Gopakumar said that RBI's rules on debt restructuring are more stringent than global norms in some cases.
Bimal Jalan, former RBI governor, says that currently it is crucial to give investment confidence in the economy and that will boost growth rate.
State Bank of India, a major banker for debt-laden Suzlon, today said the wind turbine maker's move to approach corporate debt restructuring cell would give more time for lenders to sort out the issues.