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To be sure, not all homeowners can benefit from a restructured loan; renting is a better option for some.
Under the old rule, banks could avoid reporting losses so long as they expected to get the principal back eventually, even if the borrower did not have to pay interest on the restructured loan.
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Infrastructure loans probably make up half of restructured loans.
Restructured loans are still rising in India (see chart).
Around 15% of restructured loans typically turn bad in India.
Previously restructured loans are also turning bad again.
Bankers and the central bank argue that "restructured" loans are unlikely to result in large losses.
Cumulative restructured loans are 8% of the total and are roughly equal to its capital.
It looks likely that a big chunk of restructured loans will turn sour.
Estimates by The Economist suggest that 93% of restructured loans sit with public lenders.
In the quarter to March many state banks saw a spike in new restructured loans.
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