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SDR may Reduce the Non Performing Assets

News:

Lenders to Lanco Teesta Hydro Power will convert part of their Rs 2,400-crore outstanding loans to the company into 51% equity in the most significant such takeover since the Reserve Bank of India allowed lenders to do so when borrowers fall behind on repayments. 
Source: ET

SNP Insight:

The right to convert debt to equity by lenders under Strategic Debt Restructuring (SDR) scheme of RBI may help banks to recover loan amount to improve upon there non performing assets (NPA). Also, this would create a sense of seriousness among the borrower to improve upon the operationality. 
Source: SNP Infra Research