Debt restructuring of PSBs

Public Sector Bank

Debt restructuring of PSBs

Overseeing Committee (OC) was set up as part of Scheme for Sustainable Structuring of Stressed Assets (S4A) to review the processes involved in preparation of resolution plan for reasonableness and adherence to provisions of the guidelines of the S4A scheme. Further, RBI has advised that banks, with concurrence of OC, may refer even other cases of resolution of stressed assets to OC which are outside the purview of S4A.

For resolution of stressed assets, RBI has introduced a number of tools such as Corporate Debt Restructuring (CDR), Strategic Debt Restructuring Scheme (SDR) and Scheme for Sustainable Debt of Stressed Assets (S4A).

The Government has carried out the exercise of capitalization of Public Sector Banks (PSBs) to conform with regulatory capital norms as well as for driving credit growth to cater to the needs of a growing economy.

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