CDR cell approves loan recast
The corporate debt-restructuring (CDR) cell has approved loan recasts worth Rs 19,950 crore in the first four months of the present fiscal. This is basically an indication that the corporates remain stressed. The number of referrals, however, took a sharp fall; the figure fell to eight for the same period.
Soundara Kumar the deputy managing director and group executive who handles the portfolio of stressed assets management at State Bank of India (SBI) stated that the new approvals could be mostly for accounts that were spill overs from the last year. New requests are very less this year.
Kumar also mentioned that the referrals to the CDR cell have fallen. This might be due to the fact that they are organising JLFs (Joint Lenders’ Forum) to identify stress in an account and trying to quickly rectify it. Kumar came out with some real time data and mentioned that in July, cases like Saisudhir Infrastructure (Rs 900 crore) and Core Education (Rs 590 crore) were approved. The RBI (Reserve Bank of India) had come up with the guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP) pertaining to the framework for Revitalising Distressed Assets in the Economy earlier this year.
Meanwhile, loans to companies like Soma Isolux NH1 Tollway (Rs 2,070 crore), Base Corporation (Rs 1,030 crore) and Ankit Metal and Power (Rs 900 crore) have been referred to the CDR cell in July.
Source- The Financial Express
