Restructuring likely to be at 5-8% of banks loan book under new norms: ICRA

With tighter debt recast norms announced by the Reserve Bank, the likely restructuring by banks will be around 5-8 per cent of their overall loan book, says a report.

Last week, the RBI allowed banks to go for a one-time restructuring of corporate and personal loans that are under stress due the Covid-19 pandemic.

The central bank also laid out some norms for implementation of a resolution plan which included eligibility of only special mention accounts 0 (SMA-0) borrowers as on March 1, 2020, independent credit assessment (ICA), higher provision among others. SMA 0 accounts are those where interest and