"The revised norms are in line with the measures being announced by RBI and the government to reduce the NPA problem. While the move came as a relief for both PSU banks and debt-laden companies, it is unlikely to materially change the fortunes of either, money managers said. Fund managers termed the move positive for PSU banks as they have significant exposure to corporates.For debt-ridden companies, the scheme will spell relief in terms of ease of loan repayment period. Banks have been given the option of converting the unsustainable debt, which cannot be serviced with cash flow, into equity. Sustainable debt refers to loans that can be serviced with a firm's existing cash flow.

Source: Economic Times June 14, 2016 19:38 UTC