Of course, a bank can renegotiate terms of a loan if circumstances warrant, but this must be for a good reason and the bank should recognise the consequent risks.
It can be seen easily the extent of damage that can happen to the profitability, liquidity and solvency of banks, if timely recovery of such large amount of stressed assets do not materialise. Regulatory measures 14. Reserve Bank has been making constant efforts to enable banks to improve the quality of lending.