
OECD urges India to cut stake in banks, insurance firms
Despite the reduction in non-performing loans and the creation of a 'bad bank', resolution procedures remain slow, says OECD
Despite the reduction in non-performing loans and the creation of a 'bad bank', resolution procedures remain slow, says OECD
IBC 2.0 may include a full-fledged individual insolvency framework, pre-packaged insolvency for bigger corporates, group insolvency framework and use of tech in IBC.
Everything that could go wrong has gone wrong – political will has weakened, poor regulatory culture endures and the system seems to have been gamed
In FY22, scheduled commercial banks recovered ₹92,564 crore via multiple channels such as Lok Adalats, Debt Recovery Tribunals, IBC, and SARFAESI Act.
SBI as a financial creditor has filed the petition at the Allahabad bench of the NCLT under the Insolvency and Bankruptcy Code
With liquidations surpassing resolutions, bankers need to look at alternatives to the bankruptcy code.
The ARCs, the quintessential bad banks, can help the commercial banks focus on underwriting good loans, supporting GDP growth.
Not just lack of regulations of private ARCs, continuous writing-off of NPAs and creation of new ones point to gross failures of the IBC and other mechanisms
With a debt recovery of 20% and liquidation of 29.7% cases, five years on, the Insolvency & Bankruptcy Code is hurting banks, businesses and the economy.
MCA to soon begin deliberations with RBI, finmin on IBBI recommendations to bring in a code of conduct