> The resolution framework must be based on the borrower's pre-COVID operating and financial performance, and the impact of COVID-19 on its operating and financial performance in Q1 and Q2FY21, to assess the cash-flows for FY21/FY22 and subsequent years … [Read more...] about KV Kamath committee report on loan restructuring for sectors: What does it mean?
Companies in about half-a-dozen sectors, including hospitality, aviation, travel and tourism, are likely to seek the benefit of one-time loan restructuring which will kick in from the next month, said bankers. There may not be a rush for restructuring from corporates as only those sectors which are having cash flow problems are likely to go in for loan recast to avoid the tag of 'restructured account', bankers opined. … [Read more...] about Firms in hospitality, aviation, tourism sectors likely to seek loan recast: Bankers
> On concerns expressed on the last date, two or three rounds of meeting have taken place and it has been examined. Considered decisions have to be taken. In consultation with banks as banks will play a vital role. Kindly defer for two weeks. (Inputs from LiveLaw) … [Read more...] about SC Hearing on Loan Moratorium Highlights | Hearing to resume on Sep 28; interim orders to continue
“Considering the average asset life in the industry to be around 10 years, we recommend the committee to enhance the ‘Total Debt/EDITDA ratio’ to 6 times from the current 4.5 times, the premise of repaying loans in 4.5 years for assets that will last over double the time needs to be reconsidered. Further, considering the cost of borrowing capital in India is one of the highest in the world, we request the committee to recommend lending to the auto component industry at the same interest spread as priority sector, to secure the industry from any downgrade in ratings due to the adverse impact of COVID-19 related disruptions," added Jain. … [Read more...] about Kamath Committee report | Implementation is key, says auto sector
In June, large size retailers (more than Rs 300 crore revenue) witnessed a degrowth of 59 percent YoY and small retailers (<Rs 300 crore sales) witnessed a degrowth of 69 percent YoY. Region-wise findings indicated West at -74 percent YoY and North at -71 percent YoY continued to suffer the most. East and South both signalled a 62 percent on year fall in sales. … [Read more...] about KV Kamath committee report: FMCG, corporate retail outlets among 26 sectors listed for restructuring