Over 2 Lakh Crore, Bad Loans Settled, Says Government Official
Over Rs 2 lakh crore of loan defaults were settled, and fresh addition of non-performing assets of financial institutions have also come down after the Insolvency and Bankruptcy Code (IBC) came into being in 2016, said the top government officials on Friday.
“I do not want IBC to be the first resort; we wanted it to be last resort. What is the situation today is the situation which is exactly that (last resort),” said Secretary to Ministry of Corporate Affairs Inteji Srinivas said.
He was giving a speech at the inaugural session of a three-day international conference on ‘Insolvency and Bankruptcy Laws: Global Response’ organized by the ICFAI Law School, in association with Delaware Law school, Winder University and Insolvency and Bankruptcy Board of India
RBI report shows that the fresh addition to the NPAs have came down so has overall NPS, Srinivas said.
For every single case settled under the National Company Law Board Tribunal, nine cases were settled outside the tribunal said, Srinivas.
In earlier times he said that some businessmen used to develop ‘vested interest’ in falling businesses and as a result, there were no competitive spirits among the entrepreneurs.