ICICI Direct: Kamath Committee Report - Prudent Restructuring Metrics Amid Covid-19

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.The KV Kamath Committee has submitted its recommendations on financial parameters to be factored in for restructuring of Covid-19 corporate stress.The report indicates sector specific leverage and debt servicing metrics to be gauged by lenders in lieu of restructured accounts by FY22, FY23E.The committee will also validate resolution plans wherein aggregate exposure is Rs 1,500 crore or above.On August 06, 2020, the Reserve Bank of India announced a framework, which allowed lenders to restructure corporate and personal loans.As per these guidelines, only those borrowers would be eligible for resolution, which were classified as standard or special mention accounts-0 (less than 30 days default) with the lending institution as on March 01, 2020.These guidelines exclude micro small and medium enterprise borrowers with less than Rs 25 crore exposure as on March 01, 2020, farm credit, credit to financial institutions, credit to any state or central government bodies and loan to own staff..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Kamath Committee Report - Prudent Restructuring Metrics Amid Covid-19

ICICI Direct: Kamath Committee Report - Prudent Restructuring Metrics Amid Covid-19

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