“The total amount of loan to be structured by banks over 2011-2012 and 2012-2013 is estimated at Rs 2 trillion,” the rating agency has said in a press release.
A sizeable portion of the restructuring would comprise large-ticket corporate exposures; total restructured loans will account for 3.% of the total advances as at March 2013. Furthermore, banks gross NPAs are set to increase to 3.2% by March 2013, from 2.9% as at December 2011.
“The large quantum of restructuring reflects the prevailing stress on corporate India's credit quality because of lower profitability, weak demand and tight liquidity,” the agency has said.
CRISIL has said that it believes that sectors with large debt are particularly vulnerable to restructuring.
According to the rating agency the susceptible sectors include aviation, construction, engineering. Steel, textiles and telecom.