With wilful defaulters and the enormous stockpile of non-performing assets on the books of public sector banks making headlines every day, several commentators have made hopeful references to the impending new insolvency legislation. The finance minister recently stated that the Insolvency and Bankruptcy Bill is likely to be passed in the second half of the Budget session and attributed many of the debt recovery challenges faced by public sector banks to the lack of a sound insolvency law framework.
But how far is the new legislation likely to go in addressing these challenges? The Bill has a number of helpful provisions for tackling large loan defaults. First, it enables the early detection of financial …
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