Banking

11/29/11 .business-standard.com/india/printpage.php?autono=455142&tp= &A: K R Kamath, CMD, PNB loan restructuring is wish a chakravyuha Som asroy Chakraborty & T E Narasim han / mamma bai Novem ber 11, 2011, 0:48 IST Rising borrowing costs, strained counterchange flow and delays in execution of projects have prompted many Indian companies to restructure their animated debts with banks. Punjab National Bank (PNB), the country s secondlargest lender, has restructured nearly Rs 20,000 crore of lends in the last three and a half(prenominal) years. In an question with Somasro Chakrab ort and T E Narasimhan, Chairman and Managing Director, K R Kamath, says a debt recast is needed to aid borrowers in servicing their loans. alter excerpts: Are you worried about the caliber of loans that has been restructured? Restructuring is like a chakravyuha, everyone knows how to get in, but nobody knows how to set about out of it. further it is not a taboo. The banker is like a do ctor. If we see symptoms of stress, the runner thing we try is to treat on the basis of those symptoms. We endure t worry about what others would compute --- whether the media would like my actions, or whether analysts would support it. If I delay my action, it may be too late for the patient (borrower) to recover.

Do you expect a point in which slippages in your restructured portfolio may swing the bank s asset quality and erode bread? Asset quality is based on the ability of borrowers to serve well loans. We have twain options: Either we worry and do nothing, or we can pay off a solution. Restructuring means adjusting the repayment schedule to ch! ange the cash flow of customers because of circumstances beyond their control. The Reserve Bank of India (RBI) has ordained a committee to check up on the existing guidelines on loan restructuring, and suggest accounting discussion for them. It would ensure everything rests in peace. Loan growth is slowing because of higher(prenominal) interest rates. When do you run it to recover? The problem is we...If you penury to get a in full essay, order it on our website: OrderCustomPaper.com

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