The restructuring is precisely to ensure they do not become NPAs. All efforts are being made by RBI to make sure genuinely affected companies get time to restructure debt. As an example: a road construction company which pays down debt from toll collected on highways is distressed. they could increase the tenure of the loan, reduce emi and would hence end up not becoming an NPA.
Yes. This was precisely the intuition behind the RBI decision. They do not want companies which were operational pre-march to become NPAs due to covid.
This is what an investor would hope for. Btw as i had pointed out in earlier post, the process for NPA recognition will become more stringent for these stressed assets. 30 days of non-payment will convert them to an NPA. Frankly i find the RBI action to be very balanced. If a business/retailer can prove their cash flows have been impacted by covid, they can even get a 2 year moratorium from the bank, this is entirely up to the discretion of the bank. Bank can lower the interest rate, bank can increase the tenure of the loan, ask for more of a down-payment, larger collateral, everything is fair game.
As we had discussed earlier, the banks with correct processes for dealing with stress will emerge relatively unscathed from this, whereas those with poor risk assessment processes will take a larger hit.
Disc: invested, full portfolio is on this thread.