2016
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following company has became India’s first firm to get debt recast under RBI’s new Scheme for Sustainable Structuring of Stressed Assets (S4A)
|
|
Reliance Construction Company
|
|
|
Hindustan Construction Company
|
|
|
Birla Construction Company
|
|
|
ATI Construction Company
|
Explanation:
Detailed explanation-1: -HCC was the first company to receive RBI nod for debt reconstruction under the S4A scheme.
Detailed explanation-2: -Restructuring is an act in which a lender, for economic or legal reasons relating to the borrower’s financial difficulty, grants concessions to the borrower.
Detailed explanation-3: -Stressed assets are a sum of Non-performing assets, restructured loans, and written-off assets. During the period of 90 days before becoming non-performing assets, these are called ‘stressed assets.
Detailed explanation-4: -The evergreening of loans is a well-known exercise, in which banks revive a loan on the verge of default by granting further loans to the same firm.
There is 1 question to complete.