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Should the RBI grant a one-time loan restructuring? Here's what experts have to say

Updated : August 03, 2020 05:48 PM IST

A fascinating exchange between the veteran of Indian financial sector Deepak Parekh and Reserve Bank of India governor Shaktikanta Das at an industry event last week laid bare a divide within corporate India. Lenders do not want the moratorium extended but borrowers are batting for an extension.

Amidst all this, the finance minister has hinted that a one-time restructuring of loans is in the making and the government is "actively engaged with the RBI."

While banks are more welcoming of a restructuring of loans than a moratorium, former deputy governor NS Vishwanathan warned that a restructuring if it is granted, must be very tightly targeted.

So, should the RBI grant a one-time restructuring? If yes, what should be the conditions? To discuss this Latha Venkatesh spoke to Sunil Srivastava former Deputy MD of State Bank of India, RK Bansal MD & CEO of Edelweiss Asset Restructuring Company, V Srinivasan former Deputy MD of Axis Bank and Sunil Mehta CEO of Indian Banks Association.
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