Covid-19 impact: Karnataka Bank expects to recast less than 4% loans

Karnataka Bank expects less than 4 per cent of loans to come up for one-time restructuring because of the Covid-19 pandemic. Its loan book stood at Rs 54,099 crore at the end of September 2020.

The Mangaluru-based private lender is talking with two consortium accounts — where it has exposure of Rs 300 crore in trading, and Rs 200 crore infrastructure accounts — for OTR, said its Managing Director & CEO Mahabaleshwara M S.

Borrowers have to establish stress due to Covid-19 for financial profile. The economic fallout due to the Covid-19 pandemic has led to significant financial stress for borrowers across the board.