Rejig stressed accounts: Parekh
Mumbai, April 14
HDFC Chairman Deepak Parekh on Tuesday pushed for a one-time restructuring of stressed real estate accounts and relaxation in classification of NPA norms to 180 days from 90 days to help the sector which has been severely affected due to Covid-19 related disruptions.
While addressing representatives from the real estate sector through video conferencing, Parekh said unless the stressed accounts are restructured, financial institutions will find it difficult to provide additional liquidity to the sector. The video conference was organised by Naredco and Credai.
Parekh said renegotiation on repayment timelines is a better solution than getting into legal tangles. “Unwinding from a legal mess will be very painful,” he said.
He said the RBI, for some period of time, should extend the classification of NPAs norms to 180 days from the present 90 days. — PTI
