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 / ma bai Novem ber 11, 2011, 0:48 IST Rising borrowing costs, strained interpolate 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 fractional 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 quality of loans that has been restructured? Restructuring is like a chakravyuha, everyone knows how to get in, but nobody knows how to make it out of it. further it is not a taboo. The banker is like a doctor. If we s ee symptoms of stress, the runner thing we try is to treat on the basis of those symptoms. We endure t worry about what others would presuppose --- whether the media would like my actions, or whether analysts would support it. If I delay my action, it may be too late for the patient (borrower) to recover. Do you expect a point in which slippages in your restructured portfolio may pretermit the bank s asset quality and erode profits? Asset quality is based on the ability of borrowers to serve up loans. We have twain options: Either we worry and do nothing, or we can pay off a solution. Restructuring means adjusting the quittance schedule to change the cash flow of customers because of circumstances beyond their control. The Reserve Bank of India (RBI) has ordained a committee to check into the existing guidelines on loan restructuring, and suggest accounting treatment for them. It would ensure everything rests in peace. Loan growth is slowing because of heights inter est rates. When do you run it to recover? T! he problem is we...If you motive to get a in full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper