As India growing at the slowest pace in the last 10 yeras it is natural thet most of the corporates are not able to serve the loan taken by them from Banks and even defaulting in timely repayment of principal .
As the March 13 closing will be done by various Banks it is likely that Banks will rescue the corporates by adopting the popular methord of restructuring the loan . giving temporary reprive to the promoter . As seen in past NPA level of Bank loan is highly concerning and RBI has taken serios note of it
This year it is expected that USD 17 Billion of Loan is likely to come for restructuring which is 40% higher to last year
All Loans restructured after 1st April 2015 will be treated as NPA . Till now Restructured loan is not classified as NPA .
Some of the Key points are as follows
1. Now corporate Gurantee will not be accpted . Rather Bank have to take personal Guarantee of Promoters at the time of restructuring
2. Conversion of Deby to Equity/ pref share can no more be to unlimited amount . It can be max of 10% of restructured loan . It will no more be allowed in non listed Company .
3. Promoters must bring in atleast 15% of the Bank sacrifice amount
4. Bank Provisioning % increased to 5% from present 2% ( Restructured Loan ) from 1st June 2013
As the March 13 closing will be done by various Banks it is likely that Banks will rescue the corporates by adopting the popular methord of restructuring the loan . giving temporary reprive to the promoter . As seen in past NPA level of Bank loan is highly concerning and RBI has taken serios note of it
This year it is expected that USD 17 Billion of Loan is likely to come for restructuring which is 40% higher to last year
All Loans restructured after 1st April 2015 will be treated as NPA . Till now Restructured loan is not classified as NPA .
Some of the Key points are as follows
1. Now corporate Gurantee will not be accpted . Rather Bank have to take personal Guarantee of Promoters at the time of restructuring
2. Conversion of Deby to Equity/ pref share can no more be to unlimited amount . It can be max of 10% of restructured loan . It will no more be allowed in non listed Company .
3. Promoters must bring in atleast 15% of the Bank sacrifice amount
4. Bank Provisioning % increased to 5% from present 2% ( Restructured Loan ) from 1st June 2013
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