K V Kamath Committee Ratios

The kv kamath committee along with members ashwin parekh divakar gupta ca t n manoharan sunil mehta recommended five financial ratios for the stressed 26 sectors for lenders to consider while finalizing resolution plans.

K v kamath committee ratios. While the six month moratorium on loan repayments ended on august 31 the rbi has allowed banks to recast loans which were classified as standard as on march 1 2020. The reserve bank of india rbi on 4 th sept set up a 5 member expert committee under banker k v kamath to suggest financial parameters for resolution of corona related stressed assets. The committee headed by veteran banker kv kamath has recommended financial ratios for 26 sectors which could be factored in by lending institutions while finalising a resolution plan for a borrower. The central bank s announcement is based on the recommendations of the k v kamath committee which submitted its report last week.

The 26 sectors identified by the five member kv kamath committee have to maintain the three threshold ratios current ratio debt servicing and debt coverage ratio out of the five ratios for. Kamath panel s 5 key ratios may make loan recast hard for small metal firms the k v kamath committee s recommendations on loan restructuring are likely to offer some relief to the hospitality sector that is now staring at a debt pile say hotel executives. From rbi web site the reserve bank had on august 7 2020 announced the constitution of an expert committee under the chairmanship of shri k v. Various writ petitions have been filed in the court highlighting the plight of borrowers small and big who were being charged compound interest post the.

Kamath led committee released its report on monday web desk september 07 2020 23 38 ist the committee appointed by the reserve bank of india rbi on monday released its report on loan restructuring as part of the resolution framework for covid 19 related stress identifying 26 sectors that lending institutions should consider when determining resolution plans for borrowers. Key faqs on k v kamath committee s recommendation to rbi s otr scheme introduction. Kamath to make recommendations on the required financial parameters to be factored in the resolution plans under the resolution framework for covid19 related stress along with sector specific benchmark ranges for such parameters. Kamath committee report on recommendations to bail out sectors affected by the covid 19 pandemic.

Given the immense loss of income to organizations and individuals in the wake of the covid 19 pandemic we are all aware that the reserve bank of india has decided to permit a one time restructuring of loans without classifying these as non performing assets amid the ongoing covid crisis which is hitting.