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    • Question

      A stressed account with outstanding ₹100 crore is

      proposed for restructuring. Bank sacrifice in NPV terms is ₹18 crore. Promoter offers additional equity of only ₹5 crore and no personal guarantee. What should be the bank’s primary stance?
      A Approve restructuring to avoid NPA Correct Answer Incorrect Answer
      B Approve with higher interest Correct Answer Incorrect Answer
      C Reject restructuring due to inadequate promoter sacrifice Correct Answer Incorrect Answer
      D Convert full debt into equity Correct Answer Incorrect Answer
      E Defer decision for one year Correct Answer Incorrect Answer

      Solution

      Restructuring requires meaningful promoter sacrifice, not token contribution.

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