Mangaluru: Effective implementation of the Insolvency and Bankruptcy Code, 2016 can potentially release about Rs 25,000 crore capital currently locked up in non-performing assets over next 4-5 years, noted a recent ASSOCHAM-Crisil joint study.
“If implemented successfully, the code will help India’s banking sector catch up with or even exceed recovery rates of 32% and average time taken of 2.8 years in other emerging markets,” highlighted the study titled ‘Insolvency and Bankruptcy Code 2016: A game changer,’ conducted by ASSOCHAM jointly with Crisil.
The released capital can be deployed for other productive lending, which in turn could help in credit expansion, it said.
Highlighting that this code will also contain s…
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