RBI News: RBI Deputy Governor M. Rajeswara Rao said that since its implementation in 2016, the Insolvency and Bankruptcy Code (IBC) has succeeded in improving bank asset quality and resolving 'bad loans' worth more than Rs 10 lakh crore. Addressing an international conclave focused on insolvency resolution, Rao emphasized the importance of collaborative efforts between the parties with a focus on restructuring and revival and suggested that a detailed study of IBC cases can provide valuable insights for future loan strategies.

The Deputy Governor gave information.

The deputy governor made this statement at a conference organized by the Insolvency and Bankruptcy Board of India (IBBI) in collaboration with INSOL India. According to a statement issued by the Ministry of Corporate Affairs on Sunday, the deputy governor praised the substantial progress made in cleaning up the balance sheets of banks and also highlighted possible areas of improvement. IBBI Chairman Ravi Mittal said in his address that IBC has brought about significant changes. Significant behavioral changes in the debtor-creditor ecosystem have succeeded in eliminating the "defaulters paradise". He also mentioned the settlement of more than 28,000 cases before admission.

Emphasis on the need for 'bank health'

In his welcome address, Dinkar Venkatasubramanian, Chairman, of INSOL India, spoke about the evolution of IBC in India and also highlighted the recent initiatives of INSOL India aimed at strengthening the insolvency ecosystem. Rana Ashutosh Kumar Singh, Managing Director, SBI, lauded the transformational impact of IBC on the profitability and asset quality of banks. He emphasised the need to maintain 'bank health' as ​​the cornerstone of achieving the vision of a developed India and emphasized constructive suggestions for further improvement.