Banks have sought a special dispensation from the Reserve Bank of India to enable them to nurse companies that require deep restructuring back to health, with lesser burden on them.

SBI Chairman Arundhati Bhattacharya said banks have requested the central bank to amortise the hair cuts (or sacrifice) that they take when restructuring loans. The sacrifice includes reduction in the interest on the loan, extending the repayment period, etc.

Banks also want the RBI to grant an exemption from the clause relating to making an open offer when debt is converted into equity in all mechanisms related to resolution of distressed assets.