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MUMBAI: Banks are likely to restructure up to Rs 8.4 lakh crore of loans, or 7.7 per cent of the overall system’s credit, under the newly announced recast package, a domestic ratings agency said on Wednesday.
Over 60 per cent of this Rs 8.4 lakh crore was susceptible to slip into the non-performing assets (NPAs) category if not for the recast move, and the restructuring will help banks’ bottomlines as the money to be set aside as provisions will be lower, India Ratings and Research said.
Earlier this month, the RBI had announced a recast package which focused on a case-by-case approach for restructuring rather than a blanket or sectoral approach. The central bank had also allowed small value non-corporate loans…
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