Data shows that this activity has become a trend in recent period as more and more companies become aware of the fact that moving to CDR cell impacts their image among bankers and limits the scope for fresh funding.
The outstanding restructured advances of 10 major banks stood at Rs 1,77,333 crore, out of which the tally of those under CDR cell was Rs 58,366 crore. Rest of the restructured advances were under non-CDR category where banks and borrowers settled bilaterally.
"In the current environment, the cash flows of many small and medium-sized units have been stressed. It is easier to restructure loans offered to these companies outside the CDR mechanism," a senior executive of Indian Banks' Association (IBA).