Is my Retail unit eligible for restructuring?

Eligibility rests on viability — a TEV report has to establish that projected DSCR >= 1.2x over the restructured tenor. Willingness of promoters to bring equity infusion is a major positive factor.

What is the standstill on asset classification during restructuring?

Under the RBI Prudential Framework, the standstill window is 180 days from Review Period start. If ICA is signed inside 180 days, standard classification is preserved (subject to the additional 20% + 15% provisioning by lenders).

Can a single-lender exposure be restructured?

Yes — the RBI framework applies to single-lender and multi-lender exposures. For single-lender, no ICA is needed; the lender's Credit Committee approval governs.

Which lenders in Chandigarh (UT) are most flexible on restructuring?

Historically SBI and Punjab National Bank have supported viable MSME restructuring under the RBI framework, especially where sector-specific policy (RBI's MSME resolution circulars) allows.

Is DRT Chandigarh convenient for tri-city borrowers?

Yes — DRT Chandigarh is headquartered in Sector 17, serving Chandigarh, Mohali, Panchkula and the wider region.

Are Chandigarh Estate Office rules a factor in auction?

Yes — commercial and Sector-wise residential properties require Estate Office transfer approval; leasehold conversion status matters.

Where are appeals from DRT Chandigarh filed?

At DRAT Delhi, which is the appellate seat for DRT Chandigarh.

What OTS bands are typical for tri-city NPAs?

Fully secured exposures typically see 60–80% recovery; unsecured exposures see wider bands from 25–50%.

Chandigarh (UT) • Commercial negotiation

Loan Restructuring in Chandigarh (UT)

Restructuring proposals under the RBI June 2019 Prudential Framework — for viable Chandigarh (UT) businesses seeking to reset tenor, moratorium, working-capital cycle or interest rate before the account slips to NPA / Doubtful.

Viability memo — TEV assessment, cash-flow projections, debt-service coverage.

Restructuring proposal under the RBI Prudential Framework — signed inter-creditor agreement (ICA) where multiple lenders are involved.

Working-capital reassessment — CC / OD limits reset, drawing power recomputed.

Board-note drafting for the lender's Credit Committee / SARB.

Post-implementation monitoring — quarterly compliance certificates for 12 months.

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Written by

Sharad Wardhan

MD, NPA Experts

CA, ex-Deputy Vice President (Banking)

Legally reviewed by

NPA Experts Legal Review Panel

Empanelled counsel practising before DRT, DRAT and High Courts

Last updated

June 25, 2026

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This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.

Chandigarh (UT)

Everything a Chandigarh (UT) borrower needs to know about Loan Restructuring

When restructuring beats OTS in Chandigarh (UT)

Restructuring is the right path when the business is viable but cash-flow is temporarily stressed — typical for Retail trade and SME services units in Chandigarh (UT). OTS is right where viability is broken and the choice is between settlement discount and continued default interest.

The RBI June 2019 Prudential Framework — the operating law

The 7 June 2019 RBI framework replaced legacy schemes (CDR, SDR, S4A, JLF) with a lender-driven Inter-Creditor Agreement (ICA) approach. Key trigger: any account in default is reviewable inside 30 days; a Review Period of 180 days follows, within which the ICA restructuring is finalised. Failure triggers additional 20% + 15% provisioning by lenders — a strong incentive to close inside 180 days.

TEV — the report that drives the sanction

A Techno-Economic Viability (TEV) report from a Category-I RBI-empanelled agency is mandatory for exposures above ₹100 Cr and industry-standard for exposures above ₹25 Cr. The TEV report drives the tenor, moratorium and coupon proposed to lenders. In Chandigarh (UT), TEV is a common bottleneck — plan the agency selection and site visit at the start of the 180-day window.

Working-capital reset — the Retail playbook

For Retail trade units, the working-capital reset typically involves: (a) reassessment of MPBF/Turnover Method limits, (b) reset of drawing power basis stock/book-debt margin, (c) release of ad-hoc limits into regular sanction. Under the current RBI framework, working-capital reassessment can be part of the ICA restructuring without triggering standstill on standard classification.

Local intelligence

Courts, lenders and hubs relevant to Chandigarh (UT)

Court structure

Punjab & Haryana High Court

Writ jurisdiction seat.

DRT Chandigarh (headquarters)

DRT Chandigarh is headquartered here and serves Punjab, Haryana, HP and Chandigarh UT.

Primary lenders

• SBI
• Punjab National Bank
• HDFC Bank
• ICICI Bank
• Axis Bank

Banking hubs

• Chandigarh
• Panchkula (adjoining)
• Mohali (adjoining)

Stressed sectors

Retail trade; SME services; Real estate

Auction / procedural note. Chandigarh Administration's Estate Office has specific transfer rules for auctioned commercial and residential property.

FAQ

Loan Restructuring — Chandigarh (UT) FAQs

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