Page 2 - Stressed Loans
Revise your Feb 12 guidelines on stressed loans: Power producers to RBI
Power producers have asked the Reserve Bank of India (RBI) to revise its February 12 guidelines on doing away with some earlier debt reorganising instruments, such as Statutory Debt Restructuring (SDR) or the Scheme for Sustainable Structuring of Stressed Assets (S4A). They have asked that where these had already been invoked, the provisions be allowed to be carried over, at least for 12-18 months. The revised framework, they also feel, should provide for implementation of a resolution plan (RP) if approved by 75 per cent of lenders by value, in line with the Insolvency and Bankruptcy Code. And, that the schedule for an RP needs to take into account the receipt of regulatory or government approvals -- in many cases, projects are held back for this reason.In a letter to RBI, the Association of Power Producers say the new guidelines majorly dis-incentivise any loan restructuring in the segment. These, instead, push for sale and change of control for an entity in some difficulty on loan .
 "Revise your Feb 12 guidelines on stressed loans: Power producers to RBI")
Indian banking sector's stressed loans increase to $147.33 billion
As of end-September, the banks' total stressed loans were Rs 8.97 lakh crore
 "Indian banking sector's stressed loans increase to $147.33 billion")
Stressed loans rise 15% in June to Rs 9.22 lakh crore
PSBs accounted for about Rs 8.10 lakh crore of the total stressed loans as of June
 "Stressed loans rise 15% in June to Rs 9.22 lakh crore")
