Loan recast requests continue to pile up at the CDR cell

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SummaryUnion Bank of India restructured loans worth Rs 1,004 crore in the October-December period...

to be treated. The JLF must finalise a restructuring package within 30 days if lenders find it technically viable.

To incentivise banks to resolve issues quickly, the central bank has said it will allow them better regulatory treatment of stressed assets if an action plan gets under way. However, the lack of solutions will attract accelerated provisioning. The RBI will permit banks to sell their loans at a loss, and to amortise the costs over two years, which will help because the hit to the P&L would be staggered.

Union Bank of India restructured loans worth Rs 1,004 crore in the October-December period, of which Rs 640 crore is owed by state discoms. The bank has a restructuring pipeline of Rs 1,800 crore for the January-March period, a big chunk of which will be accounted for by one account, Arun Tiwari, CMD, observed.

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