Loan Restructuring

Evergreening is more sinister now as banks are indulging in the practice despite having complete knowledge of the risks involved.

Crisil says half of its rated mid-sized firms eligible for loan recast under new guidelines

Crisil said it rates 6,800 mid-sized entities and more than half of them are small and medium enterprises (SMEs) having a bank loan exposure of up to Rs 25 crore.

NBFCs move RBI seeking loan restructuring, liquidity support

Finance Industry Development Council (FIDC) – a Representative body cum Self-Regulatory Organization for Non-Banking Finance Companies has written to the RBI raising these demands.

NBFCs seek extension of MSME restructuring scheme until March 2022

The industry body also urged the RBI to allow restructuring of certain MSMEs loans that already have got the similar relief under the same scheme during the first wave of COVID-19, but are now facing challenges.

Two reasons why the banking sector is not out of trouble

Bounce rates in debit transactions are high; lenders want to extend restructuring window

Loan restructuring make or break factor for hospitality industry: FHRAI

The industry has pinned hopes on the finance minister making sector-specific tweaks to allow hospitality establishments to benefit from loan restructuring.

Those who repaid loans despite COVID difficulties must be rueing their decision, says Brickwork Ratings

The financial sector will witness severe stress with the extension of the moratorium and restructuring being planned, says Brickwork Ratings

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

According to rating agency Crisil, nearly two-thirds of the companies rated by it would be eligible for one-time debt restructuring based on the parameters proposed by the K V Kamath Committee. That’s a big number.

5-8% of overall loans will get restructured under new framework: ICRA

The RBI has operationalised guidelines based on K V Kamath-led panel’s recommendations, which give relief to 26 listed sectors affected by the pandemic and stress on banks factoring-in leverage, liquidity and debt service ability before admitting a case.

Kamath Committee report | Tourism industry welcomes recommendations, but fears meeting thresholds will be challenging

Federation of Associations in Indian Tourism & Hospitality (FAITH) pegged tourism industry’s losses for FY21 to Rs 15 trillion (Rs 15 lakh crore) owing to the coronavirus pandemic.

KV Kamath committee report: Will help real estate sector in debt servicing, raise buyer confidence, say experts

The KV Kamath committee has come out with guidelines for 26 sectors, including real estate and this long-awaited measure is expected to benefit the liquidity strapped sector, real estate experts said.

Will loan restructuring criteria leave out deserving companies?

Ultimately, a lot depends on how quickly demand will recover and to what extent

RBI loan restructuring norms could exclude large number of companies: Report

Bankers expect advances worth only Rs 2-3 lakh crore, or 2-3 per cent of overall bank loans, to be eligible for restructuring

Finance Minister Sitharaman asks banks to roll out loan restructuring scheme by September 15

The minister urged lenders to immediately put in place a board-approved policy for resolution at the review meeting with heads of scheduled commercial banks and NBFCs through video conferencing.

Four principles to be followed in RBI’s loan restructuring

It is important to note that restoring the health and stability of the banking sector is critical to the recovery of the economy from this crisis

Simply Save podcast | Will RBI's loan restructuring scheme work for you?

Harsh Roongta explains the program and whether or not it would be effective.

Things should be back to normal by September, says MD of Shriram Transport Finance

Although interest rates have come down now, the moratorium has made the outlook for the NBFC sector uncertain, says Umesh Revankar

Tough job awaits veteran banker KV Kamath in charting rescue plan for Indian banks

According to the details put out by the RBI on Thursday, the Kamath panel will have the final say in deciding if a high value loan, beyond a threshold, is eligible for the one-time restructuring.

MPC | A cautious pause, focus on financial stability

It is important to note that revival in economic activities in the coming quarters will remain critically dependent on fiscal policy support. Steps by the RBI as the debt manager of the government can potentially play a critical role in managing bond market sentiment

Restructuring replaces moratorium – Who has the last laugh?

HDFC Bank will be the biggest beneficiary of this move as it has the largest proportion of retail loans

Das gives what banks asked for: one-time loan recast but with riders

On June 26, Moneycontrol had reported that the RBI will allow a one-time loan restructuring scheme, taking into account the severe impact of COVID-19 on the economy

Brookfield mulls majority stake in debt-ridden Suzlon: Report

The firm is consulting with a financial advisor to evaluate the deal which would include acquiring stake by buying new shares and putting up open offers for existing shareholders

Banks seek further relaxation from RBI under 5:25 scheme

RBI‘s norms require banks to maintain NPV for all the existing that are on their books. The RBI too has indicated that they are re-examining this issued

Ready to be more flexible in loan recast to spur growth:RBI

The RBI is ready to give the banks more flexibility as it recognises the fact that it cannot micromanage distressed loans, Raghuram Rajan said.

Tighter corporate debt recast norms soon, says RBI

Worried over the rising instances of loan restructuring, which hit a record high last fiscal, the Reserve Bank of India (RBI) on Friday said it will issue final guidelines on the prudential norms on restructuring of advances by lenders by the end of the month.