Second wave of Covid-19: Consider second loan recast, PSBs tell RBI

Want lower provisioning for restructuring than last year

Reeling from the second wave of Covid-19 and its economic impact, public sector banks have proposed allowing a second recast of loans that were restructured last year and to keep the status of the accounts intact.
 
The situation is grim, especially for micro, small, and medium enterprises and households in the second wave. Many who availed of restructuring earlier do not see very healthy prospects now.
 
In this backdrop, some chief executives flagged concerns during an interaction with Reserve Bank of India Governor Shaktikanta Das and sought a second recast with prudential norms, said a senior banker aware