The revised framework requires grant of additional credit facilities to a firm in financial difficulty to be treated as a case of restructuring and lists out the criteria for determining whether or not the borrower is in financial difficulty. Some have expressed the view that the criteria are too broad.
The banks, through policies approved by their boards, should fix the parameters and ensure strict adherence thereto. We would expect boards to be reasonable in setting the parameters and will not accept case specific exceptions. 24. Some question the timing of the February 12th circular. I would say certain changes are sooner brought in than later.