About Rs 1 lakh crore of small debt recast likely

ZeeBiz WebTeam | Jan 03, 2019, 06:56 PM IST

Reserve Bank of India allowing restructuring of stressed loans to micro, small and medium enterprises could lead to restructuring of as much as Rs 1 lakh crore of debt, said Icra.

 

 

 

 

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5-10 per cent of Rs 12 lakh crore loans outstanding to MSMEs may come up restructuring.

Image source: PTI

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Rs 5,000 crore- Banks may have to set aside as provisions for restructured loans.

Image source: PTI

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5 per cent- RBI has asked banks to provide for in addition to debt that will be restructured under the plan.

Image source: PTI

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14.5 per cent- NPA ratio for larger MSME borrowers (Rs 10-25 crore loans) in June.

Image source: DNA

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12.8 per cent – The ratio two years ago.

Image source: PTI

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A Tilted Playing Field

A Tilted Playing Field

Only 22.5 per cent of India's total credit pie is available to micro, small and medium enterprises; of this almost 10 percentage points goes to individuals borrowing in personal capacity.

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When small isn't beautiful

When small isn't beautiful

Loans of ticket size of $1.4 million to $3.6 million to India's micro, small and medium-sized enterprises are sourcing at a rapid pace.

Image source: DNA