Resolution framework

1. Resolution Framework 2.0
For COVID Related
Stressed Assets
Under
MSME / Small Business/ Individual
Date: 21.05.2021
Credit Monitoring –I

2. BACKGROUND OF THE RESOLUTION PLAN 2.0
2
The resurgence of COVID-19 pandemic in recent weeks has caused severe
disruptions to Business activity and livelihood across the country. Consequently
the repayment of Bank loans under various categories has suffered and there is
all possibility of deterioration in Asset Quality.
In continuation of the COVID resolution plan announced on 06.08.2020, RBI has
come up with second dose of relief, Resolution Framework 2.0, to help business
continuity and earnings.
The highlights of RP 2.0 are follow

3. Target Group – RF 2.0
3
MSME SMALL BUSINESS RETAIL (Individual & Personal
Loans)
▪ MSME borrowers with
aggregate exposure upto Rs.
25 crore (funded + Non-
Funded) across all lending
institutions as on 31.03.2021
▪ Borrower under category of
Agro/Food Processing, Social
Infrastructure & Renewable
Energy sector (Registered
under MSME)
❖Retail & Wholesale Trade
Businesses
❖Allied Activities like Dairy,
Fishery, Animal Husbandry, Poultry,
Bee Keeping and Sericulture
❖KCC, Crop Loans and Other Farm
Credits (Except for the allied
activities mentioned above) are
NOT eligible under this Resolution
Framework
Individuals who availed Personal
Loans like
• Consumer Loan
• Educational Loan
• Housing Loan
• Car Loan (Other than
Commercial Vehicle Loans)
• Personal loans secured by
Immovable property
• Personal Loans given for
social ceremonies
• Personal Loans to
Professionals (not includes
the loan for business
purpose)

4. SAILENT FEATURES OF RP 2.0
4
PARAMETERS MSME SMALL BUSINESS RETAIL
Date of Invocation of
Resolution
Date on which borrower submits application for restructuring as per
Resolution Framework 2.0
Timeline for invocation To be invoked on or before 30th September 2021
Time line for
communication of Bank's
decision to borrower
30th September 2021 or within 30 days from the date of receipt of
application whichever is earlier
Time line for
Implementation
Within 90 days from the date of invocation. However, Bank shall strive
for early implementation
Aggregate Exposure
Aggregate exposure of the borrower (Fund Based + Non fund based)
does not exceed Rs.25 Cr as on 31.03.2021 across all lending
institutions
Fresh Slippage in Apr’21
Eligible accounts slipped to NPA after 31.03.2021, shall be upgraded to
“Standard” category upon implementation of restructuring under this
policy.
Common Features for MSME, Small Business and Retail:

5. Eligibility& Date of Reference
5
MSME SMALL BUSINESS RETAIL (Individual & Personal Loan)
1.Accounts which are in "Standard" category as on
31.03.2021 BUT NOT RESTRUCTURED on or after
01.01.2019 (as per MSME Restructuring Guidelines
dated 01.01.2019, 11.02.2020 & 06.08.2020 issued by
RBI)
2.Borrower is registered in Udyam Registration Portal - if
not, then the same to be completed before
implementation of restructuring – Not applicable for
Retail & wholesale Traders
3.Borrowing entity is GST registered as on the date of
implementation, unless exempted from GST
registration as on 31.03.2021
4.Working capital Accounts already restructured after
01.01.2019 are eligible only for reassessment of limit
based on revised working capital cycle, reduction in
margin etc.
5.Term loan accounts under MSME which were already
Restructured after 01.01.2019 are Not Eligible
➢Accounts which are in "Standard" category
as on 31.03.2021 BUT NOT RESTRUCTURED
as per Resolution Framework 1.0
announced by RBI on 06.08.2020
➢Working Capital can be considered for
reassessment of limit, margin without
treating it as restructuring. However the
limits and margins to be restored to levels
as per earlier restructuring (RP 1.0) by
31.03.2022
✓The Borrower accounts which were
classified as standard as on
31.03.2021
✓Credit facilities provided by the
Bank to its staff shall not be eligible
for resolution under this framework

6. Stress Indicators
6
MSME SMALL BUSINESS RETAIL (Individual & Personal Loans)
• Supply chain affected
• Cash flow adversely affected
• Time required for stabilization of unit
• Labour shortage due to migration of
labour, lockdown etc.
The above list is indicative and not
exhaustive
The ultimate test would be, in the given
scenario, if the restructuring is
permitted, the borrower’s ability to
service the debt should indicate
perceptible improvement from the
impact of Covid 19
• Supply chain affected
• Cash flow adversely affected
• Time required for stabilization of unit
• Labour shortage due to migration of
labour, lockdown etc.
The above list is indicative and not
exhaustive
The ultimate test would be, in the given
scenario, if the restructuring is permitted,
the borrower’s ability to service the debt
should indicate perceptible improvement
from the impact of Covid 19
For Salaried/ Pensioners:
❖ Loss of Job
❖ Not getting salary due to pandemic outbreak
❖ Substantial pay cut of 40% or more in the salary
compared to pre-Covid level
Self Employed:
❑ Unit Closed
❑ Supply chain affected
❑ Cash flow adversely affected
❑ Further time required for stabilization – greater
than 6 months
❑ Unit yet to start
❑ Labour shortage – including migrant labourers
❑ For GST Registered entities, turnover for Pre &
Post Covid period to be compared and wide
deviation in turnover impacting cash flow to be
analysed

7. Stress Indicators– Continued……
7
MSME SMALL BUSINESS RETAIL
For Both the categories as above:
➢ Incurred unexpected & substantial expenses in treatment of
COVID 19 or related ailments for self / family members, subject
to submission of borrowers’ declaration acceptable to the
sanctioning authority
Education Loan:
➢ Where the moratorium period has ended and repayment of
instalment has commenced and the borrower has not been
able to service the loan due to Un-employment / Under
employment
The above list is indicative and not exhaustive

8. Resolution Plan
8
MSME SMALL BUSINESS
RETAIL
(Individual & Personal Loans)
➢ Rephasement of MSME term loan
by extending residual tenor upto
84 months (including moratorium
of 24 months) and in exceptional
cases upto 120 months
➢ Reassessment of working capital
limit
➢ Working capital term loan for
balance excess over drawing
power
➢ Funded Interest Term Loan for
existing overdue interest.
➢ Rephasement of term loan by allowing
moratorium and or extending residual
tenor by 24 months (Max)
➢ Extension of residual tenor for Term
Loan and or Moratorium permitted
under Resolution Framework 1.0 & 2.0
put together should not exceed 24
months
➢ Working capital term loan for balance
excess over drawing power
➢ Reassessment of working capital limit
➢ Funded Interest Term Loan for existing
overdue interest.
➢ Rescheduling of repayment including extension of
repayment period by maximum of 24 months
➢ Extension of residual tenor for Term Loan and or
Moratorium permitted under Resolution Framework
1.0 & 2.0 put together should not exceed 24 months
➢ Correspondingly, the overall tenor of the loan may
also get modified commensurately, even if the same
exceeds the maximum tenor stipulated for the
product
➢ The moratorium period, if granted, shall come into
force immediately upon implementation of the
resolution plan
➢ Compliance of exit age and maximum loan term of
various loan scheme will not be mandatory for
implementation of Resolution plan. Provision of
Bullet Payment / Progressive Monthly Instalment
(Negotiated EMI) shall also be provided if required.

9. Miscellaneous Issues – MSME & Small Business
9
Term Loan Working Capital Loans
➢ Maximum 24 months moratorium period
(for Principal Repayment) and or extension
of residual tenor can be sanctioned while
restructuring
➢ Moratorium period interest is to be
serviced as and when debited
➢ Monthly instalment to be refixed based on
the restructured terms.
➢ For additional limit due to reassessment, a
separate OCC account under the product
RWC (RF 2.0) is to be opened
➢ For the uncollected interest in working
capital accounts, FITL sanction to be
accorded

10. Sanctioning Authorities
10
SanctioningAuthoritiesfor approvalof resolutionplan of borrowers
➢ The above powersare applicable,only if there is no additionalexposureconsideredto the
borrowerunderthis plan. Any additionalexposurein the form of reassessment of WC loan,
shall be consideredby the respectivesanctioningauthorityas per prevailingdelegationof
powersfor credit.
TOTAL EXPOSURE OF THE BORROWER SANCTIONING AUTHORITY
Upto Rs.50 Lakhs Branch Manager – Scale – I
Upto Rs.75 lakhs Branch Manager – Scale – 2
Upto Rs.1 Cr Branch Manager – Scale – 3
Upto Rs.3 Cr Branch Manager – Scale – 4
Upto Rs.5 Cr Branch Manager – Scale – 5
Above Rs.5 Cr Respective Sanctioning Authority
❖ In case of accounts sanctioned by higher authorities, the above authorities should report to the
sanctioning authority, post implementationof resolution plan
❖ Working Capital Term Loan / Funded Interest Term Loan (FITL), if any shall be also be sanctioned by the
above authorities.

11. TOTAL ELIGIBLE ACCOUNTS FOR RESTRUCTURING (RF 2.0) (Rs. In Cr.)
11
CMCWISE& SECTORWISESUMMARY
SECTOR I / II
STD SMA0 SMA1 SMA2 TOTAL
NO AMT NO AMT NO AMT NO AMT NO AMT
RETAIL
CMC I 309574 23319.50 66827 6843.70 41779 3189.57 22778 1518.49 440958 34871.26
CMC II 148000 12760.43 26036 2564.87 20907 1966.98 6488 494.97 201431 17787.25
TOTAL 457574 36079.93 92863 9408.57 62686 5156.55 29266 2013.46 642389 52658.51
AGRI
CMC I 16112 556.80 11214 596.34 3241 329.35 4818 141.61 35385 1624.10
CMC II 2635 788.01 2621 658.32 1462 304.17 667 78.61 7385 1829.11
TOTAL 18747 1344.81 13835 1254.66 4703 633.52 5485 220.22 42770 3453.21
MSME
CMC I 61522 5208.03 28020 5850.90 29729 3598.85 12524 1783.11 131795 16440.89
CMC II 65185 5598.51 33716 4270.16 49105 4063.09 12863 915.78 160869 14847.54
TOTAL 126707 10806.54 61736 10121.06 78834 7661.94 25387 2698.89 292664 31288.43
TOTAL
CMC I 387208 29084.33 106061 13290.94 74749 7117.77 40120 3443.21 608138 52936.25
CMC II 215820 19146.95 62373 7493.35 71474 6334.24 20018 1489.36 369685 34463.90
GRAND
TOTAL 603028 48231.28 168434 20784.29 146223 13452.01 60138 4932.57 977823 87400.15
SECTORWISESUMMARY
SECTOR
STD SMA 0 SMA 1 SMA 2 TOTAL
NO AMT NO AMT NO AMT NO AMT NO AMT
RETAIL 457574 36079.93 92863 9408.57 62686 5156.55 29266 2013.46 642389 52658.51
AGRI 18747 1344.81 13835 1254.66 4703 633.52 5485 220.22 42770 3453.21
MSME 126707 10806.5 61736 10121.1 78834 7661.94 25387 2698.89 292664 31288.4
TOTAL 603028 48231.28 168434 20784.29 146223 13452.01 60138 4932.57 977823 87400.15

12. Zonewise Likely slippage Vs Eligible for Restructuring as on 19.05.2021 (Rs. In Cr)
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FGMO/Zone
Commitment
for May'21
Actuals Likely
slippage
Of which
eligible for
Restructuring
FGMO/Zone
Commitment
for May'21
Actuals Likely
slippage
Of which
eligible for
Restructuring
FGMO: Bengaluru FGMO: Coimbatore
BENGALURU 11.20 168.62 85.96 COIMBATORE 28.00 176.97 100.73
ERNAKULAM 6.25 81.35 56.82 KARAIKUDI 9.06 90.56 58.73
HUBBALLI 5.00 50.02 28.35 KRISHNAGIRI 14.50 115.53 74.71
KOZHIKODE 4.55 27.07 18.43 KUMBAKONAM 15.81 90.03 52.06
THIRUVANANTHAPURAM 7.19 52.53 26.02 MADURAI 6.50 55.11 34.98
Total - FGMO: BENGALURU 34.19 379.59 215.58 SALEM 10.00 132.32 76.03
FGMO: Bhubaneshwar TIRUNELVELI 11.65 116.79 72.64
BERHAMPUR 4.00 15.05 9.53 TRICHY 5.07 54.14 32.19
BHOPAL 8.12 152.29 110.18 TOTAL - FGMO: COIMBATORE 100.59 831.44 502.08
BHUBANESHWAR 8.40 75.07 45.57 FGMO: Hyderabad
JABALPUR 10.01 88.80 66.67 AMARAVATHI 8.31 44.48 26.60
RAIPUR 9.59 78.28 64.57 HYDERABAD 14.00 114.02 71.71
SAMBALPUR 4.00 48.92 37.31 KARIM NAGAR 8.00 28.28 12.73
SATNA 8.26 73.41 59.12 TIRUPATI 8.00 64.80 32.56
TOTAL - FGMO: BHUBANESHWAR 52.38 531.81 392.95 VIJAYAWADA 4.00 78.26 41.62
FGMO: Chennai VISAKHAPATNAM 22.49 130.12 98.02
CHENNAI NORTH 10.26 93.23 62.97 TOTAL - FGMO: HYDERABAD 64.80 459.96 283.23
CHENNAI SOUTH 13.00 137.34 88.28 FGMO: Mumbai
CUDDALORE 9.00 83.42 57.20 AHMEDABAD 9.56 64.96 54.67
KANCHEEPURAM 6.00 52.60 25.85 MUMBAI (SOUTH) 8.61 78.43 35.02
POONAMALLEE 12.00 84.31 50.57 MUMBAI (WEST) 40.81 97.50 35.15
PUDUCHERRY 10.00 85.82 50.49 NAGPUR 12.20 42.07 33.12
TIRUVANNAMALAI 6.50 24.48 13.10 PUNE 11.07 126.11 90.73
VELLORE 7.84 99.75 59.31 SURAT 20.64 80.65 65.12
TOTAL - FGMO: CHENNAI 74.60 660.94 407.76 TOTAL - FGMO: MUMBAI 102.89 489.72 313.82
Eligible for Restructuring- 63% Grand Total 429.45 3353.46 2115.41

13. DOs & DON’Ts
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DOs
➢ Availabilityof Restructuring/Resolution Plan shouldbe displayedon the Notice Board of
the Branches and throughflex bannersin local languageat prominentlocations.
➢ Eligibleborrowersshould be proactivelycontactedfor RP insteadof waitingfor request
from the borrowers
➢ Application,as prescribedand duly signed by borrower& guarantor,must be obtained
➢ Adequatemoratoriumand or extensionof residual tenorupto the cap of 24 months, must
be givenbased on the cash flow assessed
➢ In case of “Retail loans” Optionsfor ‘Bullet Payment’, ‘ProgressiveMonthlyInstallment
(PMI)’, ‘NegotiatedEMI’ may also be consideredas per requirement
➢ Timelinesstipulatedfor “Invocation”,“CommunicationOf Bank’s Decision”&
“Implementationof ResolutionPlan”must be adheredto.
➢ Necessary marking of “RestructuringUnder Covid”in CBS (new optionadded in Screen
No.17050) must be done.
➢ Revisionin RepaymentScheduleshouldbe re-run in CBS in terms of the appliedRP

14. DOs & DON’Ts
14
➢CGTMSE/ECGCcover to be obtained,wherevereligibleand GuaranteeFee to be realized
from borrower
DON’Ts
➢ DON’T considerCompromisesettlements,as a ResolutionPlan
➢ DON’T rejectrequestfrom Borrowersin StandardRegular Category(Not in SMA), if
genuinereasons with supportivedocumentsare submitted
➢ DON’T rejectrequestfrom borrowers,not appearingin the list of eligibleborrowersin the
Portal,unless verifiedproperlyfor Non-eligibility.
➢ DON’T considerTerm Loan of MSME borrowers,already restructuredunder Covid-1
package,for re-phasement/re-schedulingunder the Covid-2package
➢ Don’t RestructureGECLS, PMSVANIDHIand Sub-ordinateDebt until furtherinstructions.

15. Circulars
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ResolutionFramework1.0
RBI Notification:
RBI /2020-21/17 DOR. No. BC/4/21.04.048/2020-21 dated August 6, 2020 – Resolution Framework1.0 - Resolution of
Covid -19 related stress
Our Bank Circulars:
MSME Department CircularNo: 117/2020-21 dated 31.08.2020
Policy: Cir No: Adv-118/2020-21 dated 02.09.2020 - “Policy on ResolutionFrameworkfor COVID-19-related Stress”.
Retail Department CircularNo: 129/2020-21 dated 14.09.2020
ResolutionFramework2.0
RBI Notification:
RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 May 5,2021 - Resolution Framework 2.0 – Resolution of Covid -19
related stressof Individuals and Small Business
RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-22 dated May 5,2021 – Resolution Framework 2.0 – Resolution of
Covid-19 related stressof Micro, Small and Medium Enterprises (MSMEs)
Our Bank Circulars:
Policy : Circular No: ADV-23/2021-22 dated 13.05.2021
MSME Department CircularNo: ADV-24/2021-22 dated 13.05.2021
Retail Department Circular No: ADV- 25/2021-22 dated 13.05.2021

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