Streamlining the Insolvency Code's Impact on Asset Recovery
The Insolvency and Bankruptcy Code in India aids banks in reducing non-performing assets by enforcing a robust framework for asset recovery. Financial Services Secretary M Nagaraju emphasized the importance of collective efforts to improve timelines, enhance bidder participation, and promote responsible resolution practices, benefiting banks and debtors alike.
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The Insolvency and Bankruptcy Code (IBC) has been instrumental in helping banks tackle non-performing assets, according to Financial Services Secretary M Nagaraju. Speaking at the ninth annual day of the Insolvency and Bankruptcy Board of India, he stressed the importance of collaboration and strategic planning in maximizing the Code's effectiveness.
Nagaraju highlighted the critical role of banks' commitment in handling stressed assets, urging them to participate fully in NCLT hearings and adhere to established procedures. The IBC, enacted in 2016, is designed to provide a market-driven, time-bound process for asset recovery, which has supported banks in recovering dues and driving early settlements.
Echoing Nagaraju, NCLAT Chairperson Justice Ashok Bhushan underscored the need to strengthen institutional capacity and encourage competitive bidding. The department aims to streamline the insolvency law's execution with public sector banks to create a more efficient and fair process.
(With inputs from agencies.)
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