Debt overhaul under Covid’s second window jumps for private banks


Three banks topped the charts

HDFC Bank Ltd., ICICI Bank Ltd. and Bandhan Bank Ltd. added most of the restructured loans under the second window among private lenders.

HDFC bank alone added recast loans worth Rs 17,398 crore. Of this total, over Rs 14,000 crore belonged to individual retail borrowers, while individual commercial borrowers added an additional Rs 1,500 crore. Cumulatively, through the two RBI windows, the bank restructured loans worth Rs 25,228 crore as of September 30.

It is not only the level of restructured loans that is of concern.

Of the 7,830 crore rupees restructured under the first window by HDFC Bank, 1,687 crore rupees in loans slipped into the non-performing category as of September 30. Most of these postings – around Rs 1,283 crore – came from retail borrowers.

“Based on the analysis we’ve done so far, we don’t think the impact would be more than 10 to 20 basis points on our APMs at any given time,” said Jimmy Tata, director of credit at HDFC Bank. analysts told analysts after reporting the lender’s second-quarter earnings.

In the case of ICICI Bank, which added Rs 4,158 crore to restructured loans under the second window, Rs 3,030 crore came from retail accounts. And it was significantly higher than in the first round.

Much of the restructured loans came from home loans, home loans, commercial vehicles and vehicle finance books, the bank had revealed.

Speaking to analysts after the bank’s quarterly results, ICICI Bank chief financial officer Rakesh Jha said there were a handful of retail borrowers who were still going through the investment phase. implemented as part of the restructuring plan.

“But in the overall context, it won’t be a big number, I would say. It will definitely be less than 10 billion rupees (1000 crore rupees),” Jha told analysts. “That’s what’s there in terms of the pipeline.”

Bandhan Bank also added over Rs 8,000 crore in restructured loans under the second window, compared to Rs 696 crore in the first program. Most of the second window recast loans came from the bank’s individual business book.

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