Technoglitch
Core Member
When bankers invited promoters and top management of stressed firms for a meeting this week at State Bank of India’s (SBI’s) headquarters in Mumbai, many of them didn’t know what they were stepping into.
Lenders, who have so far operated as a disjointed group and were concerned only about their own books, put up a united front. No matter how complicated the case or how tough the solution, bankers wanted an answer on how and when interest payments will be regularized. They were open to discussion, but they did not want just lip service.
The message from the bankers to the top management of stressed firms was clear—banks are willing to help only if the need is genuine and if promoters are doing their bit. But if a company is stringing lenders along, banks will take drastic steps, including pushing for a management change.
Banks put up a united front in seeking resolution plan from stressed borrowers - Livemint
Lenders, who have so far operated as a disjointed group and were concerned only about their own books, put up a united front. No matter how complicated the case or how tough the solution, bankers wanted an answer on how and when interest payments will be regularized. They were open to discussion, but they did not want just lip service.
The message from the bankers to the top management of stressed firms was clear—banks are willing to help only if the need is genuine and if promoters are doing their bit. But if a company is stringing lenders along, banks will take drastic steps, including pushing for a management change.
Banks put up a united front in seeking resolution plan from stressed borrowers - Livemint
