Covid-19 impact: Union Bank estimates 6-7% of loans may be restructured

These loans include corporate accounts, where Rs 6.3 trillion of credit may be recast, and non-corporate accounts (Rs 2.1 trillion), such as retail, agriculture and MSME

Public sector lender Union Bank of India estimates 6-7 per cent of its loans (over Rs 36,000 crore) maybe restructured under the Reserve Bank of India’s (RBI’s) scheme for borrowers adversely impacted by the Covid-19 pandemic.

Rajkiran Rai G, managing director and chief executive, Union Bank of India, said the bank had conducted an internal exercise. These are rough estimates (6-7 per cent) and could change, based on parameters that the K V Kamath Committee will firm up. A clearer picture will emerge after the end of the September quarter.

The restructuring business will be done through three