RBI said non-repayment of loans, restructured for some sectors of the economy due to global financial crisis, are not expected to be significant as the economy is on the path of recovery.
"Slippage in restructured accounts was not expected to be significant, especially in view of the recovery in the economy," the RBI said in its annual report for 2009-10.
Some of the loans given to corporates by banks were restructured under a special dispensation introduced over a limited period to give a boost to industry fighting economic downturn in 2008 and 2009.
However, the RBI said non-repayment of some of these loans could, to some extent, impact the asset quality of banks, which means some of these loans could become NPAs.
The 2009-10 annual inspection process reviewed the manner in which the restructuring guidelines were implemented by the banks to ensure the preconditions and safeguards prescribed in this regard had been complied with, it said.
As on end-March, the restructured standard advances constituted less than 3 per cent of the total gross advances of the banks.
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