Banks recast loans worth Rs 35,000 crore under RBI's second scheme

Banks have recast loans worth Rs 35,000 crore under the Reserve Bank of India’s (RBI’s) regulatory package 2.0 till June this year. This is much lower than the Rs 1 trillion of loans restructured under the earlier package announced after Covid took hold in the country in 2020, according to CARE Ratings.

Retail and loans to micro, small and medium enterprises have the largest share in the two schemes combined.

The resurgence of the pandemic from March 2021 and the subsequent steps to contain its spread impacted economic activities and created new uncertainties.

In May 2021, the RBI came up with a restructuring