Banks under loan reconstruction scheme. 35000 crore loan recast

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Mumbai: Under the loan reconstruction scheme announced by the Reserve Bank, banks have reclaimed loans worth a total of Rs 2,000 crore. The first loan recast scheme in 2020 saw a loan recall of more than Rs 1 trillion, compared to the low number of restructured loans in recall scheme-2.

Looking at the two recast schemes combined, retail and micro, small and medium enterprises appear to have the highest number of loan recalls, according to a report by Care Ratings.

The second wave of Corona disrupted economic activity in the country and re-created uncertainty in the economy.

In May this year, the Reserve Bank announced a loan restructuring scheme to provide relief to retail borrowers and small business houses. Most of the restructuring has been done by a public sector bank.

Most of the loans were restructured in the June quarter. Even in the current quarter, some loans are likely to be restructured.


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