India’s banking sector is set for significant changes as lawmakers push for amendments to the Insolvency and Bankruptcy Code (IBC). Since its 2016 introduction, the IBC has been key to recovering bad loans (NPAs) and improving company oversight. The latest proposed changes aim to fix existing issues and align with international standards, but success will depend on overcoming persistent operational hurdles that have slowed down resolutions.
Key Amendments Target Efficiency and Creditor Role
Finance Minister Nirmala Sitharaman highlighted the IBC’s crucial role, noting banks have recovered over half of their NPAs through its process. The proposed 12 amendments aim to speed this up, introducing features like creditor-led insolvency…