One-time restructuring should be allowed for some loans: HDFC chairman

Parekh said builders had erred in the past by over-leveraging and going on a land-buying spree.

Housing Development Finance Corporation’s (HDFC) Chairman, Deepak Parekh, has urged regulators to allow one-time restructuring of certain real estate projects — particularly for stuck projects where building approvals have been delayed. Speaking at the Second India Mortgage Leadership Conclave on Wednesday, Parekh said: “If these restructured accounts are considered as standard assets for a period of, say, 12 months, lenders will stop being so diffident. This is not a new suggestion. An exceptional regulatory treatment was permitted by the RBI in 2008, which helped revive sentiment.”

Pointing to the fact that the Indian realty market was facing pressing issues and timeliness