The Insolvency and Bankruptcy Code, 2016, in its brief history has created quite a shake-up in the corporate sector. No doubt that the enactment of the Code has been well intentioned. Due to the growing menace of loan defaults, it had long been felt to have some sort of disciplined insolvency and bankruptcy legislation to address this loan default issue, the problem which most of the banks are plagued with.
Understanding the reasons behind the increasing NPAs
If one were to study the nature of defaults, especially in the recent past, it can be understood that certain sectors have apparently been more afflicted with this delinquency. To name a few, such sectors are steel, cement, real estate and power. On further analysis, one interesting a…
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