Investors should go beyond banks' headline numbers, dig deeper after recast

While corporate loans shall be restructured, retail and SME loans are at lenders' discretion

For the first time in over a decade, analysts brushed aside the headline numbers posted by banks for the June quarter. Instead, they pushed investors to look for finer details, such as cheque bounce rates, loan book covered by the moratorium, and the cross-section of customers opting for the benefit. As regulations for restructuring come out and banks having limited time until December 31, 2020, to implement the same, the growing consensus is that September quarter results, too, may not hold much relevance.

Suresh Ganapathy of Macquarie Capital strongly feels that loan restructuring will only increase the opacity of financials and