Banks want RBI to relax debt recast guidelines

Restructuring in limbo as promoters refuse to provide personal guarantees

Dev Chatterjee & Abhijit Lele  |  Mumbai 

With the deadline of the financial year-end approaching for recognising bad loans, banks have written to the Reserve Bank of India (RBI) seeking a relaxation of debt recast norms, including spreading provisioning of large accounts for eight quarters and not seeking personal guarantees from existing promoters. Banks want RBI to relax the clause on promoters’ guarantee and make it applicable only when there is a management change or a new promoter is taking over the debt-ridden company, according to a letter sent by the Indian Banks’ Association to the central bank last ...

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Banks want RBI to relax debt recast guidelines

Restructuring in limbo as promoters refuse to provide personal guarantees

Restructuring in limbo as promoters refuse to provide personal guarantees With the deadline of the financial year-end approaching for recognising bad loans, banks have written to the Reserve Bank of India (RBI) seeking a relaxation of debt recast norms, including spreading provisioning of large accounts for eight quarters and not seeking personal guarantees from existing promoters. Banks want RBI to relax the clause on promoters’ guarantee and make it applicable only when there is a management change or a new promoter is taking over the debt-ridden company, according to a letter sent by the Indian Banks’ Association to the central bank last ... image
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