 "Banks, Bad loans, NPAs")
Sometime in the year 2000/2001, a corporate debt restructuring (CDR) scheme was introduced to resolve the non-performing assets (NPA) problem of the Indian banking system. The scheme worked well but after it started becoming ineffective, came SDR and S4A, which could not be of much help.
In my view three mechanisms are working towards NPA resolution — banks’ own efforts to resolve, the Insolvency and Bankruptcy Code (IBC) process, and the sale to asset reconstruction companies (ARC). The IBC process is certainly working effectively as it has been able to find takers for large stressed assets in a transparent way. This
