Lenders led by the State Bank of India (SBI) have sought New Delhi’s intervention in convincing the banking regulator to relax the recent rules on stressed assets, arguing that the ‘harsh’ norms and zero tolerance of bad loans could affect future credit disbursements. Bankers urged they be given a longer period — a minimum of 30 days — to start the resolution of a loan. They have also sought the government’s help to get the RBI to relax the rules regarding 100% consent from all borrowers for restructuring a loan within 180 days. Although the government does not have a direct say on the regulation of banks, particularly those relating to accounting and recognition of bad loans, banks are hoping that they were able to convey their (concerns about their) precarious positions.

(Economic Times)