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Monday, September 21, 2020

Loans worth Rs 8.4 lakh crore may enter recast scheme: Report

Total bank credit as on July 31 is Rs 102.65 lakh crore, according to the RBI data.

By: ENS Economic Bureau | Mumbai | August 20, 2020 3:19:21 am
The central bank printed 5 crore Rs 2,000 notes in 2018-19. (File)

Loans worth Rs 8,40,000 crore, or 7.7 per cent of the total bank credit, of corporates and non-corporates, including retail, agri, micro, small and medium enterprises segments, are likely to get restructured under the Reserve Bank of India’s proposed loan restructuring scheme to bring down Covid-related stress, according to an India Ratings report.

At least Rs 2,10,000 crore (1.9 per cent of banking credit) of the non-corporate loans are likely to undergo restructuring, which would have otherwise slipped into non-performing assets, India Ratings said. While the six-month moratorium on loan repayments will end on August 31, the RBI has allowed banks to recast loans which were classified as standard as on March 1, 2020. The RBI-appointed Kamath panel is working out the details of the recast plan.

Total bank credit as on July 31 is Rs 102.65 lakh crore, according to the RBI data.

The total figure could be higher if restructuring in non-corporate segments exceeds 1.9 per cent of the total bank credit.

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