Agency reports suggest that Reserve Bank of India (RBI) said it does not have any objection for banks restructuring the loan of the mining industry in Goa if they are based on the prescribed guidelines.
Ban on mining in the state affected around 22,000 trucks and 400-odd ships in the state transporting ore from different parts of Goa to the ports.
Some reports suggest that banks have around Rs 1,300 crore exposure to the troubled industry in Goa. Loan servicing had been hit after mining came to a standstill in the state.
Following the no objection from RBI, banks have reportedly begun the debt restructuring process. The Goa Chamber of Commerce and Industry (GCCI) is said to be intermediating the efforts to get the loans restructured said.
It is learnt that Canara Bank, which has an exposure of Rs 37 crore, has already begun recasting the loan, while Corporation Bank is also in the process of loan recast.
The RBI has also asked the banks to tell borrowers to opt for alternative source of business so that the loan amount does not turn into a bad debt, Raikar said, adding the borrowers would be given a breathing space till they manage alternative source of income.
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