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1.3 Lakh Indian firms seek debt restructuring
By siliconindia
|
Thursday, 09 April 2009, 21:32 IST |
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New Delhi: The recession has forced over 1.30 lakh Indian entrepreneurs, mainly of the small and medium sectors to seek restructuring of their debts from the government-owned banks. The banks has already completed corporate debt restructuring worth $148 million (
14,000) crore till February.
"Till February, SBI has approved 26,000 applications, while Bank of Baroda had approved 3,000 accounts for rescheduling of their loans," said MSME Secretary Dinesh Rai. About one lakh micro small and medium enterprises (MSMEs) have approached United Bank of India (UBI).
The increased demand for restructuring came in the wake of the recommendations of the Cabinet Secretary who proposed that the industry and trade should be given more credit with reduced interest rates. After several steps to improve liquidity in the system by the Reserve Bank of India and the government, Cabinet Secretary K. M. Chandrasekhar reviewed the progress of credit flow to industry on April 2.
14,000) crore till February.
"Till February, SBI has approved 26,000 applications, while Bank of Baroda had approved 3,000 accounts for rescheduling of their loans," said MSME Secretary Dinesh Rai. About one lakh micro small and medium enterprises (MSMEs) have approached United Bank of India (UBI).
The increased demand for restructuring came in the wake of the recommendations of the Cabinet Secretary who proposed that the industry and trade should be given more credit with reduced interest rates. After several steps to improve liquidity in the system by the Reserve Bank of India and the government, Cabinet Secretary K. M. Chandrasekhar reviewed the progress of credit flow to industry on April 2.