debt recast of logistics company Arshiya International.
Under new Reserve Bank of India rules, banks need to set aside 5% of the fresh restructured loans as provisions. If the loans turn bad, the provisioning goes up to at least 15%. Higher provisioning affects profitability of banks. In 2012-13, banks restructured R75,000 crore of loans under the CDR mechanism, nearly double the level in 2011-12.