The master restructuring agreement (MRA) was approved by a majority of lenders last week. This envisages a loan repayment schedule up to March 2038 and redemption of non-convertible debentures (NCDs) by March 2040.
The central bank doubled the loan restructuring limits of struggling small businesses to Rs 50 crore from Rs 25 crore in view of the impact of the second wave of COVID-19 on such companies
More COVID-hit businesses may need loan restructuring: Banks to RBI
Even though the central bank had permitted lenders to recast loans for borrowers earlier this month, the facility was limited to loans of up to Rs 25 crore
BusinessToday.In | May 20, 2021 | Updated 13:06 IST
RBI Governor Shaktikanta Das held a virtual meeting with the CEOs of public sector banks (PSBs) on Wednesday
Banks have told the Reserve Bank of India (RBI) that the protracted curbs because of the second wave of the COVID-19 pandemic have resulted in significant stress on businesses and that such companies may need a restructuring of loans.
Even though the central bank had permitted lenders to recast loans for borrowers earlier this month, the facility was limited to loans of up to Rs 25 crore.
Read more about Covid-19 second wave: Clamour for packages for banks and NBFCs grows on Business Standard. Senior bankers say the situation had become serious and it was tough to gauge the economic impact
Read more about The concerns that kept moratorium and restructuring requests down on Business Standard. Disincentives, borrowing behaviour change, business recovery have kept references for restructuring low, ICRA said