Banks want to restructure loans worth about Rs 3 lakh cr
Indian lenders have sought the permission of the Reserve Bank of India (RBI) for restructuring loans worth about Rs 3 lakh crore given to hospitality, aviation and commercial property companies without downgrading these assets on their books. These sectors are reckoned as among the worst-hit by the Covid-19 pandemic and subsequent lockdown.
In April end, according to estimates, banks had an exposure of Rs 2.3 lakh crore to commercial realty, Rs 45,862 crore to hospitality businesses, and over Rs 30,000 crore to aviation firms. Without the restructuring relief, nonperforming assets (NPA) on their balance sheets will surge for these banks. About two weeks ago, a similar request was made by the heads of state-run lenders to the Finance Minister.
“We have started extending loans from our Covid emergency lines to the companies that are the worst hit, but more than emergency loans, these sectors could be helped greatly if easier terms of repayment are given through restructuring,” stated the head of a state-run bank.