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CIN: U65191TN1989PTC018026



In pursuant to the RBI circular RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021, the Company is allowed to offer One Time Restructuring scheme (Resolution Framework 2.0) to those customers who have been affected due to the resurgence of COVID 19 pandemic issue.


Eligibility Criteria

Structure of Restructuring offered

Process Flow

Operational Workflow

Documentation Content

Other Considerations:

– The major co-lenders such as Incred & Northern Arc and Securitisation will fall under the eligibility pool. Co-lenders might ask to pay the FLDG on the OTR customers. This can be mitigated by buying the pool. The extent of impact needs to be estimated only after discussions with the Co-lenders.

– Lender might hold further disbursements till the collection flow stabilises. They might wait till the actual impact of OTR is seen.

– Rating Agency impact will be negative. The mitigation point shall be, to improve the collection flows in the coming months. An increasing trend in collection flow along with capital infusion would help us retain the same rating next year.

Asset classification and Provisioning:

  1. All the loans including the interim finance given before the resolution plan but later covered under the plan will be classified as standard irrespective of the account period before the implementation date.
  1. However, if the plan is not implemented, then the asset classification will follow the regular prudential norms.
  1. The provisioning for the loans will be higher of the below:

      a. Provisions held as per extant as IRAC norms before implementation.

      b. 10% of renegotiated debt post implementation.

  1. The reversal of provisions for the loans will be as follows:

      c. 50% of provisions to be reversed if borrower clears 20% of renegotiated debt post the plan implementation

      d. Remaining 50% of provisions to be reversed post payment of additional 10% of renegotiated debt.

  1. Post implementation, the asset classification will be as per original norms as per the borrower performance on the revised terms.
  1. The provisioning thus done that is not reversed can be adjusted against any provisioning requirements that might arise if any restructured account becomes NPA or additional provisioning requirements for the restructuring of such accounts.

Disclosures formats to Board and RBI:

There are two formats to be disclosed. Format X to be disclosed in the financial statements for the quarters ending September 30, 2021 and December 31, 2021 and Format B as Prescribed in Resolution Framework – 1.0. half yearly till the last account under resolution is either fully paid off or slips into NPA.