- Wealth PMS
What is the CDR mechanism? When a debt-laden company in a distressed state, and can't pay back it's debt, the bank can write off the loan as a Non-Performing Asset (NPA), curse its luck, hope for better in the future, and move on. But many a time, such a state is a temporary issue where the impact can be reduced through restructuring the loan - either through a reset (interest . . .