The code provides banks with much-needed muscle to deal with NPA accounts; it enables them to realise the maximum value out of an asset once a firm is declared bankrupt. (PTI)
Given the bad-loan crisis that grips the banking sector, the Bankruptcy Code brings greater certainty and speed with regard to filing, processing and resolution of bankruptcy pleas. It also addresses the concerns of both creditors and debtors by creating a level playing field.
The code provides banks with much-needed muscle to deal with NPA accounts; it enables them to realise the maximum value out of an asset once a firm is declared bankrupt.
It imposes jail terms of up to five years for asset-stripping of insolvent companies and mandates compani…
Read the full article at: http://www.financialexpress.com/fe-columnist/bankruptcy-code-can-help-ease-npa-pain/349363/
