The report had said though agriculture accounted for the highest gross NPAs at 5.5 per cent as of the quarter to September 2013, it is the industrial sector with a gross NPAs of 4.9 per cent and 10.9 per cent of restructured loans which is the main culprit.
The RBI today said even if the revised repayment period is longer than the residual repayment period in the earlier bank's books, the account will not be considered restructured, as long as a proper due diligence has been done by the refinancing bank or institution.
This will help banks to report better profit numbers as provisions are not required in such loans; under the existing norms, a bank has to set aside 5 per cent of the CDR loans as provisions.
