New Delhi [India], December 8 (ANI): M Rajeshwar Rao, Deputy Governor, Reserve Bank of India (RBI) on Sunday highlighted the transformative journey of the Insolvency and Bankruptcy Code (IBC) since 2016, emphasising its critical role in improving bank asset quality and facilitating substantial pre-admission settlements of underlying debts of over Rs 10 lakh crore.
While acknowledging the substantial progress made in cleaning up banks’ balance sheets, the Deputy Governor also underscored potential areas of improvement.
The Ministry of Corporate Affairs added in a release added that Deputy Governor stressed the importance of collaborative efforts among stakeholders, with a focus on restructuring and revival, and suggested that detailed studies of IBC cases could provide valuable insights for future lending strategies.
The Insolvency and Bankruptcy Board of India (IBBI) in association with INSOL India organized an International Conclave focusing on “Insolvency Resolution: Evolution & Global Perspective”.
The event brought together distinguished experts and practitioners from across jurisdictions to share insights and experiences in insolvency resolution.
Ravi Mital, Chairperson, IBBI in his special address highlighted the versatility and transformative potential of the Code, underscoring its role in dismantling the “defaulters’ paradise” through significant behavioural changes in the debtor-creditor ecosystem. He noted the remarkable settlement of over 28,000 cases before admission, while also addressing challenges such as time-sensitive nature of value preservation.
Emphasizing IBBI’s proactive approach, he outlined key regulatory reforms aimed at reducing delays and maximizing asset value. He also mentioned about consideration of innovative approaches like mediation, creditor-led resolution processes, and group insolvency mechanisms.
Rajnish Kumar, Ex Chairman, State Bank of India delivered the special address. Drawing from his firsthand experience as SBI Chairman during the initial stages of the IBC, he characterized the IBC as one of the most significant economic reforms, highlighting its transformative impact on the banking ecosystem.
He emphasised that the true success of IBC should not be measured solely by the recovery rate, but by its broader achievements in reshaping the debtor-creditor relationship and enhancing the overall health of the banking sector. He underscored the importance of the Committee of Creditors (CoC) pursuing the larger objective of value maximization.
Dr Sonali Abeyratne, Technical Director of INSOL International, also delivered the special address. In her address she outlined the organization’s core functions and recent initiatives. She specifically discussed INSOL International’s engagement with INSOL India and emphasized the importance of international collaboration and sharing global best practices in insolvency resolution.
Rana Ashutosh Kumar Singh, Managing Director, SBI delivered a keynote address. He provided lenders’ perspective on the Code, highlighting its phenomenal evolution and significant contribution. Drawing from his international experience in insolvency frameworks, Mr. Singh lauded the IBC’s transformative impact on bank profits and asset quality. He emphasized the critical need for maintaining bank health as a cornerstone of achieving the vision of Viksit Bharat, and offered constructive suggestions for further improvement. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
