Kamath Panel's 5 key ratios may make loan recast hard for small metal firms

The Kamath Panel has identified 26 sectors, including ferrous and non-ferrous, impacted by Covid-19 for a loan restructuring scheme to be rolled out by banks and non-banking financial companies. The committee has identified five key ratios with different limits across sectors as a threshold for implementing a resolution plan.  The five key ratios are: total outside liability/adjusted tangible networth (TOL/Adjusted TNW), total debt/EBITDA, current ratio, debt service coverage ratio (DSCR) and average debt service coverage ratio (ADSCR). For the steel sector, which was under st.....

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