The working group was of the view that roll-overs should not be treated as restructuring if the same is done on the strength of the borrower’s balance sheet, i.e., if the loans are not rolled over due to the weakness in the balance sheet but due to temporary needs of the borrower.
However, there was also an apprehension that such a facility might not be used for the intended aim in future, especially, when the working group was making recommendation to do away with the asset classification benefit on restructuring. Therefore, it was added that such roll-overs should only be need based and there should be a cap, say two or three times, on such roll-overs.