Loans worth Rs 10,200 crore were referred to the corporate debt restructuring (CDR) cell in July compared with over R12,000-crore loans referred in June, a banker with direct knowledge of the development said on Monday.

In the July-September period last year, about 33 cases worth R18,907 crore had been referred to the cell.

Of the six cases referred to the cell, the larger ones are Bombay Rayon (R4,055 crore) Lanco Infratech (R4,000 crore) and Abhijeet Projects (R1,228 crore), the banker said. Only one case was admitted by the cell ? a loan worth R86 crore belonging to Jindal Cotex. The number of restructured loans approved by the cell in July were not available right away.

Lanco Infratech had said earlier it had approached its bankers for a recast of debt and was negotiating for easier loan terms and an extended repayment period. This was owing to strain on its cash flow on account of lower capacity utilisation and high dues from consumers, media reports had suggested.

The 23 bank consortium to Bombay Rayon, being led by State Bank of India is most likely to admit CDR proposal for the company soon, senior bankers had told FE.

According to bankers, the 27-year-old textile company has been suffering from temporary liquidity issues owing to the large number of investments it made in Maharasthra to take advantage of the interest subsidy being offered by the state government. Other lenders in the consortium include Bank of India, Bank of Maharashtra, Corporation Bank, Dena Bank, Exim Bank, Punjab National Bank, Axis Bank, ICICI Bank, Citibank and Standard Chartered Bank.

Bankers meet every month to take stock of the development in each company admitted to CDR cell and whether they should be approved or not. According to analysts, the banking system could take a collective hit of an estimated R13,000 to R15,000 crore on bottomline in next two years due to tough restructuring guidelines issued by Reserve Bank of India (RBI).

In the final guidelines announced in May, RBI had raised the provisioning requirement for all new restructured loans to 5% starting June. This was higher than the earlier requirement of 2.75%. For all standard restructured assets, the provisioning requirement will be raised to 5% by 31 March 2016, in a calliberated manner.

Moreover, the level of promoter sacrifice has also been raised to a minimum of 20% of bank sacrifice or 2% of the restructured loan amount, whichever is higher.