The Reserve Bank of India (RBI) has decided to defer the deadline for achievement of four financial parameters under Resolution Framework 1.0 for Covid related stress to October 1, 2022.
The four parameters -- Total Debt to EBIDTA ratio, Current Ratio, Debt Service Coverage Ratio and Average Debt Service Coverage Ratio -- relate to operational performance of the borrowing entities. Originally, these ratios were required to be met by March 31, 2022.
RBI said the deferment in deadline is in view of the adverse impact of the second wave of Covid-19 and the resultant difficulties on revival of businesses and in meeting the operational parameters.