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The Reserve Bank of India’s (RBI’s) loan restructuring scheme for Covid-19-affected borrowers has seen few takers in the corporate world so far, according to bank executives who have seen very little interest in it from their corporate accounts.
Under the scheme, borrowers’ accounts will not be downgraded as sub-standard or ‘non-performing’ if their loans are restructured. Rather, they will retain their ‘standard’ status.
But the fear of a negative impact on their credit rating is holding companies back. “There is not much interest among corporates to go for restructuring since the biggest fear is the impact of credit ratings on
