Banks post huge fall in Q4 net numbers as RBI scraps restructuring schemes

No more soft pedalling, says apex bank, as it compels lenders to refer bad loans to IBC if account isn't restructured in six months

Banks have, over the past fortnight, reported substantial falls in their net profits for the financial year ending March 31, 2018, on making larger provisions for stressed accounts, after the Reserve Bank of India (RBI) scrapped all the restructuring tools lenders relied on. 

The February 12 circular from the RBI scrapped six stressed non-performing asset (NPA) restructuring mechanisms such as Corporate Debt Restructuring, Strategic Debt Restructuring (SDR), Scheme for Sustainable Structuring of Stressed Assets (S4A) and Framework for Revitalizing Distressed Assets, Joint Lenders Forum and the 5/25 loan scheme, among others. 

Now that the schemes have been withdrawn, the RBI