Overview
The finance ministry has directed public sector banks (PSBs) to accelerate efforts in resolving corporate insolvency cases under the IBC, aiming to minimize delays and improve asset value recovery. This directive follows a review meeting highlighting the need for a more collaborative approach. Despite overall improvements in banking asset quality, with Gross NPAs hitting multi-decade lows, the National Company Law Tribunal (NCLT) system grapples with significant backlogs, pushing resolution timelines far beyond statutory limits and impacting recovery efficiency.
The Enforcement Push: Ministry’s Mandate
The Department of Financial Services has issued a clear mandate to…