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RBI’s KV Kamath Committee Picks 26 Sectors For Loan Restructuring, Lists Criteria

RBI appointed KV Kamath Committee has given its suggestions for mortgage restructuring

The Reserve Bank of India (RBI) appointed KV Kamath committee on Monday picked 26 sectors which can want mortgage restructuring and listed the respective parameters the sectors want to satisfy with a purpose to avail the scheme from the lenders. The committee was shaped final month underneath the chairmanship of former ICICI Bank CEO KV Kamath to make suggestions on the monetary parameters to be thought of within the restructuring of loans impacted by the COVID-19 pandemic.

According to a launch by the RBI, the lenders want to contemplate monetary parameters like complete exterior legal responsibility to adjusted tangible web value, debt to EBIDTA, present ratio, debt service protection ratio (DSCR) and common debt service protection ratio (ADSCR), earlier than clearing restructuring of loans. Based on these standards, sector-specific thresholds for every ratio in respect of 26 sectors have been prescribed by the committee. The lenders are additionally free to contemplate different parameters, the discharge additionally stated.

The launch additional stated that the committee may also scrutinise restructuring of loans above Rs 1,500 crore and that the time period of the committee has been prolonged until June 30, 2021.

Last week, Finance Minister Nirmala Sitharaman had requested banks and non-banking monetary corporations (NBFCs) to roll out a mortgage restructuring scheme for corporations.

 

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