'Sufficient comfort': State-owned lenders back RBI loan restructuring norms

Loan recast ratio guidelines will ensure strong companies make use of the restructuring window, says one executive

Executives of state-owned banks on Tuesday said the loan restructuring parameters for corporate accounts announced by the Reserve Bank of India (RBI) will be favourable to the financial sector as these will come to the aid of companies with strong financial background.

The financial parameters, they said, are relaxed, compared to what the lenders currently follow while restructuring loans.

“The RBI has announced relaxed ratios giving comfort to lenders to go for loan restructuring. Under normal circumstances, the range is higher. By and large, the recommendations are good and will be beneficial for accounts impacted by the Covid-19 pandemic,” said the chief