By DK Aggarwal
In a major step to bring in reforms to Indias ailing banking system, the apex bank and the government are taking measures to clean-up the balance sheets, with the latest effort being the asset quality review conducted by the RBI in December 2015 and the promulgation of the Insolvency and Bankruptcy Code 2016.
Also the government recapitalisation plan for the public sector banks should help facilitate these banks in writing down bad loans.
The Presidents recent assent to the Insolvency and Bankruptcy Code (IBC) ordinance, which bars promoters from bidding for their own distressed companies, could impact lenders as it is expected to bring down the value of distressed companies due to reduced competition.
To note, banks…
Read the full article at: https://economictimes.indiatimes.com/markets/stocks/news/bank-credit-likely-to-see-manifold-jump-post-ibcs-implementation/articleshow/62094726.cms
