HDFC Banks senior official has cautioned on use of the Insolvency and Bankruptcy Code (IBC) as various banks rush in to file large corporate non-performing loan accounts to the insolvency courts.
“In general, the Code is good and one more resolution mechanism that has timeline around it. However, it should be used with prudence and not everyone should be taken straight to the NCLT proceedings,” said Kaizad Bharucha, wholesale and corporate banking in-charge at the countrys second largest private lender.
However, Bharucha executive director with the bank refused to divulge details on the accounts HDFC Bank has taken to the National Company Law Tribunal (NCLT) under the IBC, which was passed by the Parliament last year t…
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