IBA to push for one more year of benefit for loans

With an economic revival taking longer than expected, banks plan to approach the Reserve Bank of India (RBI) to continue asset classification benefits for restructured assets for one more year. RBI has said that the existing benefits available on restructuring on fulfiling certain conditions will be withdrawn for all restructurings effective April 1, 2015.

Union Bank of India chairman and managing director Arun Tiwari said Indian Banks' Association might take up next month a proposal to request RBI to continue with asset classification benefit. The growth in the economy had not turned out to be what was expected at the start of the new financial year, he added.