Ahead of the presentation of the Union Budget 2020-21, largest pure play home financier HDFC today pitched for a one-time loan recast for realty projects.

HDFC chairman Deepak Parekh said lenders are not able to write new loans for projects because a new borrowing by an entity which is already a non- performing asset becomes an NPA on day one.

The comments come amid difficult times faced by the realty sector, which has forced the government to announce a Rs 25,000-crore fund to push stuck projects.

It can be noted that the RBI has discontinued the practice of loan recast for the past few years, but has created an exception for small businesses after Governor Shaktikanta Das took over.“We are talking to the regulators, we have spoken to the Finance Ministry, one-time restructuring is absolutely necessary,” he added.

Parekh said there have been precedents of similar one-time reliefs being allowed by the RBI in the past including in 1993 and also after the global financial crisis.