Moving on fast track to salvage the small and medium enterprises, the banks have restructured loans worth Rs 8,000 crore during the five months ended January 2009.
The exercise for restructuring loans provided by the banks and financial institutions was continuing, sources said, pointing out that the Reserve Bank of India (RBI) has already extended the scheme by two months up to March 31.
During the five-month period alone, loans worth Rs 8,000 crore were restructured and more would be taken up during the remaining two months, official sources said.
Based on the representation from various industries, the RBI has extended the term of the debt restructuring scheme by two months to March 31, 2009.
According to an estimate, about one lakh accounts may require some kind of restructuring or other or else it may become non-performing asset, sources said.
If restructuring not be provided, sources said, it may compel some of the units to close down the operation as demand has declined substantially.
In addition to this, RBI and the government have been asking public sector banks to enhance credit flow to fund- starved micro, small and medium enterprises and restructure MSME accounts in a time-bound manner.
