RBI's one-time COVID debt recast sees few takers in corporate world
Credit ratings agency CRISIL said that said that the number of companies seeking RBI's one-time-debt restructuring may increase if sentiment around recovery dampens or COVID-19 afflictions keep increasing, leading to fresh curbs on economic activity

- Nov 17, 2020,
- Updated Nov 17, 2020 3:57 PM IST
As many as 99 per cent of companies, excluding MSMEs, rated by credit ratings agency CRISIL are unlikely to opt for the RBI's one-time-debt restructuring (OTDR), it said, citing a preliminary analysis of 3,523 such non-MSME firms.
The RBI had, on August 6, 2020, announced the scheme as a relief measure for non-MSME corporate borrowers having an aggregate exposure of greater than Rs 25 crore and were under stress due to the COVID-19 pandemic.
But of the CRISIL sample, only around 1% indicated that they would apply for OTDR. This is despite two-thirds of the rated entities being eligible based on the parameters proposed by the K V Kamath Committee set up by the RBI.
As many as 99 per cent of companies, excluding MSMEs, rated by credit ratings agency CRISIL are unlikely to opt for the RBI's one-time-debt restructuring (OTDR), it said, citing a preliminary analysis of 3,523 such non-MSME firms.
The RBI had, on August 6, 2020, announced the scheme as a relief measure for non-MSME corporate borrowers having an aggregate exposure of greater than Rs 25 crore and were under stress due to the COVID-19 pandemic.
But of the CRISIL sample, only around 1% indicated that they would apply for OTDR. This is despite two-thirds of the rated entities being eligible based on the parameters proposed by the K V Kamath Committee set up by the RBI.