Indian Inc can take heart from the fact that banks and financial institutions (FIs) are ready to extend a helping hand to revive ailing companies. They have restructured Rs 37,450 crore of corporate debt in 2002-03.
In the first year after the corporate debt restructuring (CDR) mechanism was put in place, banks and FIs recast 29 corporate accounts aggregating Rs 29,167 crore.
Public sector banks have restructured loans of Rs 7,368 crore under their own schemes during fiscal 2003.
Another Rs 915 worth of assets were restructured by banks under the Board for Industrial & Financial Reconstruction (BIFR) and small scale industries (SSI) schemes.
Since its launch in February 2002 to March-end 2003, the CDR co-ordinating cell at the Industrial Development Bank of India (IDBI) received 60 applications aggregating Rs 44,369 crore from borrowers for restructuring their debt obligations.
While approving 29 cases, the cell rejected 18 cases aggregating Rs 6,826 crore. Thirteen cases worth Rs 8,376 crore are being processed.
Loans restructured under CDR include those of five iron and steel units (including Essar, Ispat and Jindal) having a credit exposure of Rs 22,362 crore, two cement units (Rs 1,962 crore), five chemical units (Rs 1,829 crore) and two fertiliser units (Rs 1,466 crore).
