Loan recast: Bank of Maharashtra to put 'conflict of interest safeguards'

Lender would be "purely" looking at cash flow as a key parameter for approving proposals; borrowers must prove Covid-19 pandemic has impacted them

Bank of Maharashtra has put in safeguards to ensure loans are not restructured in a way that it leads to a conflict of interest between borrowers and bank executives, its managing director and chief executive officer A S Rajeev said.
 

“Our board has approved the loan restructuring policy. The restructuring powers have been delegated to the next higher authority that had initially sanctioned the loan to that particular borrower. This will ensure that there is no conflict of interest involved while restructuring takes place,” Rajeev said in a telephonic interview to Business Standard.

For instance, if a loan has been