Rush-hour to restructure bad loans

Bankers moved to recast bulky loans in the January-March quarter ahead of a change in rules which will lead to restructured loans being categorized as bad loans, attracting a minimum provision of 15 per cent, mentioned a business news paper. On 1 April, the so-called regulatory forbearance provided to restructured loans, allowing them to be classified as standard assets, which attract lower provisions, will expire. To beat that deadline, loans worth at least Rs 16,000 crore were restructured via the corporate debt restructuring (CDR) cell, said a banker at the cell on condition of anonymity, as he is not allowed to be quoted by the press. About Rs 7,600 crore worth of loans given to Pipavav Defence and Offshore Engineering Co was among the large restructuring cases approved this quarter.