Mumbai: Indian Bank has put in place a digital platform for restructuring all retail loans, allowing the borrowers to submit recast requests on the portal and check eligibility criteria. The portal which became active from October 5 allows borrowers to submit the requests for restructuring their personal loans like home loans, education and vehicle loans among others.
“The requests will be registered with a unique reference number and through SMS, customers will be informed to visit their respective Indian Bank Branches with required documents for completion of restructuring process,” the public sector lender said in a statement.
Country’s largest lender State Bank of India had last month announced a similar online portal to restructure retail loans.
As per India Ratings, at least Rs 2.1 lakh crore (1.9% of banking credit) of retail loans, which could turn into nonperforming assets (NPAs), may undergo restructuring.
The Reserve Bank of India had announced relief measures to the borrowers, who were affected by COVID 19 related stress so that they can either postpone their EMI to a maximum of 24 months or re-schedule repayments.
The Kamath committee on restructuring defined recast thresholds for 26 stressed sectors. It has been mandated to vet business loan proposals above Rs 1,500 crore, while retail loan resolution will be taken care of by bank boards. Banks will be required to make 10% provisioning on all loans recast.
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