$52 billion of India loans under scrutiny on RBI's bankruptcy deadline

India has one of the worst bad-loan ratios among the world's 10 largest economies

A deadline set by India’s central bank to restructure an estimated Rs 3.6 trillion ($52 billion) of stressed loans may push dozens more companies into bankruptcy.

The Reserve Bank of India in February introduced new rules and a 180-day timeline for banks to recast loans once payments are missed, scrapping previous methods that could take an indefinite amount of time. Companies that were delinquent when the norms came into force will run out of time Monday, after which lenders must start moving court to admit the cases under India’s Insolvency and Bankruptcy Code.

This marks the latest attempt by the RBI to