Confirming a trend reported by commercial banks, a study by Crisil indicated that there would be few takers for the one-time COVID-19 debt restructuring offered by the Reserve Bank of India (RBI) to help stressed companies and lenders to tide over the crisis.

With the improvement in economic activities and expectation of recovery in the next fiscal, almost 99 percent of non-MSME companies are unlikely to opt for the Reserve Bank of India’s one-time debt restructuring, says a report by Crisil Ratings.

The finding is based on a preliminary analysis of 3,523 Crisil-rated non-micro, small and medium enterprises, the report said. In August, the RBI had allowed one-time restructuring for personal loans and for non-MSME corporate borrowers having aggregate exposure of greater than Rs 25 crore and were affected by Covid-related stress. “As many as 99 percent of companies (excluding MSMEs) rated by Crisil are unlikely to opt for the RBI’s one-time-debt-restructuring (OTDR), a preliminary analysis of 3,523 such non-MSME companies indicates,” the report by the rating agency said.

Of the sample, only 1 percent indicated they would apply for a one-time debt recast. This is despite two-thirds of the rated entities being eligible based on the parameters proposed by the KV Kamath Committee set up by the RBI, it said. The rating agency’s senior director Subodh Rai said.

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