Restructuring of Loan Practices and its Implications for estimating NPA

Debt restructuring is the reorganization of borrower’s outstanding liabilities. It is generally a mechanism used by borrowers who are facing difficulties in repaying their debts. In the process of restructuring, the credit obligations are spread out over longer duration with smaller payments. This allows them flexibility to meet debt obligations. It is based on the principle that restructuring facilities available to borrowers in a timely and transparent manner goes a […]