Insolvency and Bankruptcy Code: Bankers’ Perspectives

Insolvency and bankruptcy (IBC) is a landmark in India for relieving banks from stressed assets in the corporate sector. The number of hard corecorporate NPAs referred to National Company Law Tribunal (NCLT) by banks is picking up for the early recovery of their dues. In the initial stage of implementation of IBC, several issues have come up and, therefore, the Code is amended to resolve them. While banks are developing their preference to IBC for the early corporate insolvency and bankruptcy, bank executives have to develop a fair understanding of IBC, process, institutional arrangements, and therole of Insolvency Resolution Professional (IRP) etc. This understanding would enable them to participate in the meetings of Committee of Creditors more effectively, besides observing due diligence in the matters concerning corporate insolvency and bankruptcy. Keeping this felt need in mind, the present article attempts to make an overview of IBC for the benefit of bank executives.