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Defaulting promoters may get lifeline, lenders may defer pledged share sale

However, this isn't a blanket policy and will be implemented on a case-by-case basis; accounts granted relief will undergo supervisory review

Public sector banks
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Last week, several NBFCs started selling shares of Future group after the promoter entities failed to provide more collateral on their loans | Illustration by Binay Sinha

Abhijit LeleDev Chatterjee Mumbai
Several promoter entities that are facing a deadline of March 31 to either repay loans or lose control over their companies, are likely to get a lifeline with public sector lenders planning a “deep restructuring” of their loans.

A banker said loan restructuring may be needed for some firms whose shares have been pledged as security for credit, and are finding it difficult to meet regulator norms like maintaining cover. “But this is not a blanket policy and will be implemented on a case-by-case basis,” he added.

A senior State Bank of India official said whatever changes in repayment done

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First Published: Mar 29 2020 | 8:02 PM IST

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