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
B Approve with higher interest
C Reject restructuring due to inadequate promoter sacrifice
D Convert full debt into equity
E Defer decision for one year
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