RBI hikes provisioning requirement for restructured loan to 5%
The notification further said: "It has been decided that promoters' sacrifice and additional funds brought by them should be a minimum of 15 per cent of banks' sacrifice, or 2 per cent, of the restructured debt, whichever is higher".
This stipulation is the minimum and banks may decide on a higher sacrifice by promoters depending on the riskiness of the project and promoters' ability to bring in higher sacrifice amount, it said.
Further, it said, such higher sacrifice may invariably be insisted upon in larger accounts, especially CDR (corporate debt restructuring) accounts.
The decisions are based on recommendations made by Working Group headed by B Mahapatra to review the existing Prudential Guidelines on Restructuring of Advances.
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