PSU banks to follow template with three loan buckets for recast 2.0

Lenders come out with standardised products to help mitigate Covid crisis

Public sector banks, including the country’s largest lender State Bank of India (SBI), have come out with a templated approach for restructuring retail and small business loans of up to Rs 25 crore under the Reserve Bank of India’s (RBI) Covid restructuring package 2.0. They have also come out with standardised products to make funds available to business entities for improving healthcare infrastructure and to individuals for meeting Covid treatment expenses.

Business loans have been divided into three categories. For loans under Rs 10 lakh, PSU banks will follow a standard restructuring plan while loans between Rs 10 lakh and