According to CARE Rating Agency data, top 12 banks had restructured assets worth Rs 32,530 crore in the first quarter ended June 2009 taking their total restructured assets to nearly Rs 73,000 crore.
In December 2008, the RBI granted permission to restructure accounts that are likely to turn bad. The objective was to give a temporary relief to the industry which was in distress as a result of the liquidity squeeze.
While restructuring, many banks restructured their assets which were not fundamentally sound to avoid their becoming bad debts and because of this the restructured portfolio may cause stress on some banks on NPA front.
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