Bankers wary of insolvency code as high provisioning looms

Earlier, the general perception among bankers and even policy makers at RBI was that the absence of a strong bankruptcy code was behind the many ills in the banking system

When the Insolvency and Bankruptcy Code (IBC) was introduced in Parliament in December 2015, bankers were jubilant that they could finally show some tough love to the borrowers gaming the system. But in less than a year since the Code became effective in December 2016, banks seem to have lost interest in the new framework.
 
Earlier, the general perception among bankers and even policy makers at the Reserve Bank of India (RBI) was that the absence of a strong bankruptcy code was behind the many ills in the banking system. The banking regulator had been rolling out one scheme