'With IBC, banks will decide their fate'

Bahram Navroj Vakil says the bigger the haircut for the bank, the more the government would have to infuse capital

The government could be looking at giving tax exemptions to buyers of stressed assets because they may otherwise ask for more haircuts on assets. This, in turn, will erode banks’ capital base, leading to pressure on the government to re-infuse funds, Bahram Navroj Vakil, founding partner of law firm AZB & Partners, told Advait Rao Palepu. Edited excerpts from the conversation:

How do you think the Insolvency and Bankruptcy (Resolution) Code (IBC) process has fared so far?

Overall I am very pleased with it in the first year of its operation. Regarding judgments, I think largely everyone has got it