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
Debt restructuring requests lower than expected: PNB MD Mallikarjuna Rao
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The bank had earlier expected a total amount of ₹40,000 crore to be restructured
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NEW DELHI: State-owned Punjab National Bank (PNB) on Saturday said it has received debt restructuring requests worth ₹12,000 crore.
“Out of this ₹9,000 crore was for corporates, which we have already invoked before December 31, the managing director and chief executive officer S.S. Mallikarjuna Rao said, adding that the bank had earlier expected a total amount of ₹40,000 crore to be restructured.
Request for restructuring has not been as we expected, Rao added.
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