Realty among 26 Sectors Picked by Kamath Committee for Loan Restructuring
The K V Kamath committee has made recommendations for 26 sectors that could be factored by lending institutions while finalizing loan resolution plans. The committee said banks could adopt a graded approach based on the severity of the coronavirus pandemic in a sector. A high proportion of debt f
Published -
Sep 8, 2020 4:59 AM
The K V Kamath committee has made recommendations for 26 sectors that could be factored by lending institutions while finalizing loan resolution plans. The committee said banks could adopt a graded approach based on the severity of the coronavirus pandemic in a sector. A high proportion of debt from the real estate, airlines, hotels, and other consumer discretionary sectors had been restructured, the largest contribution had been from infrastructure, power, and construction. The restructuring quantum from the corporate sector in FY21 could range between 3 per cent and 5.8 per cent of the banking credit, amounting to Rs 3.3-6.3 trillion, India Ratings said in a report. Even stressed assets that might not slip in the near term could be restructured, as Covid-19 would have aggravated stress. At least Rs 210,000 crore (1.9 per cent of banking credit) of non-corporate loans is likely to undergo restructuring after the announcement, which would have otherwise slipped into the non-performing asset category, India Ratings said in its report.
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