No account shall be taken up for restructuring unless the financial viability is established and there is a reasonable certainty of repayment from the borrower as per the terms of restructuring package.
Borrowers indulging in frauds and malfeasance shall not be eligible for restructuring. Wilful defaulters shall also not generally be considered for restructuring. Where strong justifiable reasons exist for considering restructuring the accounts of a wilful defaulter, it should be ensured that the borrower has taken satisfactory steps to rectify the wilful default.
BIFR cases are not eligible for restructuring without their express approval.
Restructuring cannot be done with retrospective effect.
If restructuring is takenup, the same should be implemented within 90 days from date of receipt of application.
The repayment period of restructured advance including the moratorium, if any, does not exceed 10 years.
Promoters margin of minimum 15% of Bank?s sacrifice should be brought in before implementation of the restructuring package.
Personal guarantee of the promoters should be available
The restructuring should not be a ?repeated restructuring?.
The restructuring package should have right of recompense clause
The Bank should have the right to prepone repayment instalments if projections are over achieved.
For any clarification/more information contact our nearest Advances Cell.
For any clarification/more information contact our nearest Advances Cell.
