The Indian Government has said that it is considering whether to ease the repayment mechanism further for cash- starved steel companies which are facing the crisis due to persistent slowdown.
Commenting on the issue, a Government Official told the media, "Many steel companies have approached for further easing of repayment mechanism. We are going through their request. It is at a very preliminary stage."
Earlier this month, RBI announced 'Scheme for Sustainable Structuring of Stressed Assets' (S4A) that envisages determination of the sustainable debt level for a stressed borrower, and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around.
As per reports, the gross Non-Performing Assets (NPAs) of public sector banks (PSBs) increased from 5.43 per cent as of March 2015 to 7.30 per cent last December -- that is, from Rs 2.6 lakh crore, to Rs 3.6 lakh crore.
Steel sector is one of the highest contributors to the stressed assets of the banks which have total exposure of about Rs 3 lakh crore to the sector alone.
As per reports, the gross Non-Performing Assets (NPAs) of public sector banks (PSBs) increased from 5.43 per cent as of March 2015 to 7.30 per cent last December -- that is, from Rs 2.6 lakh crore, to Rs 3.6 lakh crore.
Steel sector is one of the highest contributors to the stressed assets of the banks which have total exposure of about Rs 3 lakh crore to the sector alone.
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