NEW DELHI: Effective implementation of Insolvency and Bankruptcy Code can potentially release about Rs 25,000 crore capital over next 4-5 years currently locked in bad loans, according to a report.
“If implemented successfully, the code will help India’s banking sector catch up with or even exceed the recovery rates of 32 per cent and average time taken of 2.8 years in other emerging markets,” said an Assocham-Crisil joint study.
It said the capital released can be deployed for other productive lending which could help in credit expansion.
Insolvency and Bankruptcy Code, 2016, seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in …
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