"In fiscal 2013, there was a growth of about 37 percent in the total number of cases approved for restructuring and the debt thus restructured grew 52 percent, marking a sharp increase over the previous fiscal," according to 'Trends and progress of banking in 2012-13' report of RBI.

As of March 2013, banks restructured 401 accounts worth Rs 2,29,000 crore as against 292 cases worth Rs 1,50,500 crore in FY12.

Iron and steel and infrastructure sectors showed maximum distress. "As of March 2013, iron and steel accounted for 23 percent of the total restructured debt, while infrastructure (including power and telecom) held an almost comparable share of 22.7 percent in the total restructured debt," RBI said.

However, the report said during the first quarter of the current fiscal growth in the number of loan restructured cases and the amount of debt recast declined marginally to 34.3 percent and 48.6 percent, respectively from the year-ago.

In the first quarter of this fiscal, banks restructured 415 accounts with an aggregate debt of Rs 2,50,300 crore.


Latest News from Business News Desk