Banks turn to digital tools to rework debt payment structures during Covid

According to India Ratings estimates, retail loans - home, personal, auto, and credit cards - amounting to Rs 30,000 crore may come up for recast

Banks have taken to extensive use of digital tools and systems for assessing and reworking the repayment structure pertaining to retail debt restructuring, especially for customers most hit by the coronavirus pandemic.

Lenders, mostly public sector banks, have formed teams in regional and zonal offices to facilitate debt recast at the branch level. This is for the first time that retail loan restructuring is being worked upon on this scale, because of which there are no precedents to rely upon, say bankers.

According to India Ratings estimates, retail loans — home, personal, auto, and credit cards — amounting to Rs