Recast loans worth Rs 70,000 crore get extra time to meet norms

Bankers said this move comes as a support to stressed firms from sectors like tourism, real estate, hospitality and others hit badly by second wave

Loans worth Rs 70,000 crore restructured under the Covid-19 regulatory package last year will get a lease of life from RBI's move to grant them an extra six months, till October 1, 2022, to meet operational parameters like Debt Service Ratio.

Bankers said this move comes as a support to stressed firms from sectors like tourism, real estate, hospitality and other hit badly by the second wave. It is expected to reduce risks of slippage in tandem with economic recovery in the second half of the current financial year, bankers said.

Dinesh Khara, chairman, State Bank of India said the