According to deputy governor of RBI, the bank is looking into the provision that it introduced in June this year to help lenders managed stressed assets as it was too soon to write – off the debt- for- equity.
According to a report, Strategic Debt Restructuring wants banks to take ownership of firms that are in losses and to look for the new ones. This would allow bank to classify debt in question as standard rather than bad condition.
The work is in progress and soon and bank will soon reveal much more about this provision.
