According to media sources, the Reserve Bank of India (RBI) is likely to allow banks to classify the restructured accounts as standard after two years of restructuring (subject to servicing of account). However if the account is slipped after the upgradation it would be classified as restructured account again.
View: Earlier the restructured accounts continue in the restructured category till the accounts were repaid or it returned to earlier payment schedule. So if RBI gives such relaxation the restructured advances would decline and will also release provisions as banks provide 2% provision for restructured (compared to 0.4% for standard advances). If such a relaxation is given it would be positive for PSU banks which have higher restructured accounts ( PNB, BOI, BOB, Union Bank etc).
....more info
View: Earlier the restructured accounts continue in the restructured category till the accounts were repaid or it returned to earlier payment schedule. So if RBI gives such relaxation the restructured advances would decline and will also release provisions as banks provide 2% provision for restructured (compared to 0.4% for standard advances). If such a relaxation is given it would be positive for PSU banks which have higher restructured accounts ( PNB, BOI, BOB, Union Bank etc).
....more info