Banking

11/29/11 .business-standard.com/india/printpage.php?autono=455142&tp= &A: K R Kamath, CMD, PNB loan restructuring is wish a chakravyuha Som asroy Chakraborty & T E Narasim han / mummy bai Novem ber 11, 2011, 0:48 IST Rising borrowing costs, strained transport flow and delays in execution of projects have prompted many Indian companies to restructure their animated debts with banks. Punjab National Bank (PNB), the country s secondlargest lender, has restructured nearly Rs 20,000 crore of lends in the last three and a one-half years. In an question with Somasro Chakrab ort and T E Narasimhan, Chairman and Managing Director, K R Kamath, says a debt recast is needed to aid borrowers in servicing their loans. alter excerpts: Are you worried about the gage of loans that has been restructured? Restructuring is like a chakravyuha, everyone knows how to get in, but nobody knows how to tot up out of it. further it is not a taboo. The banker is like a doctor. If we see sym ptoms of stress, the runner thing we try is to treat on the basis of those symptoms. We endure t worry about what others would gauge --- whether the media would like my actions, or whether analysts would support it. If I delay my action, it whitethorn be too late for the patient (borrower) to recover.

Do you foreknow a point in which slippages in your restructured portfolio may unload the bank s asset quality and erode requital? Asset quality is based on the ability of borrowers to service of process loans. We have twain options: Either we worry and do nothing, or we can pay off a solution. Restructuring m eans adjusting the quittance schedule to ch! ange the cash flow of customers because of circumstances beyond their control. The Reserve Bank of India (RBI) has ordained a committee to inspection the existing guidelines on loan restructuring, and suggest accounting interposition for them. It would ensure everything rests in peace. Loan growth is slowing because of risque interest rates. When do you run it to recover? The problem is we...If you urgency to get a in full essay, order it on our website: OrderCustomPaper.com

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