MUMBAI: The RBIs norms on corporate loan restructuring are likely to exclude a large number of companies as bankers expect advances worth only Rs 2-3 lakh crore will qualify for recast.
A five-member committee headed by K V Kamath, constituted by the RBI to look into the parameters within which restructuring can be allowed, has submitted its recommendation to the central bank and lenders will approach their boards once the report is released.
Bankers said corporates that have been lax in repayments before March 2020 will not qualify for restructuring even if they are not non-performing assets (NPAs). Bankers expect only 2-3% of overall bank loans to be eligible for restructuring.
India Ratings has said that 7.7% of bank loans (Rs 8.4 lakh …
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