Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India

Research Article

A Study To Analyze Impact Of Insolvency And Bankruptcy Code 2016 On NPA’s Of Commercial Banks With Reference To Iron And Steel Sector

Download1558 downloads
  • @INPROCEEDINGS{10.4108/eai.18-12-2018.2286382,
        author={Arti  Chandani and Rajiv  Divekar and Abdus  Salam and Mita  Mehta},
        title={A Study To Analyze Impact Of Insolvency And Bankruptcy Code 2016 On NPA’s Of Commercial Banks With Reference To Iron And Steel Sector},
        proceedings={Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India},
        publisher={EAI},
        proceedings_a={SIMSARC},
        year={2019},
        month={9},
        keywords={insolvency and bankruptcy code; 2016; non-performing assets; iron and steel sector; liquidation; national company law tribunal},
        doi={10.4108/eai.18-12-2018.2286382}
    }
    
  • Arti Chandani
    Rajiv Divekar
    Abdus Salam
    Mita Mehta
    Year: 2019
    A Study To Analyze Impact Of Insolvency And Bankruptcy Code 2016 On NPA’s Of Commercial Banks With Reference To Iron And Steel Sector
    SIMSARC
    EAI
    DOI: 10.4108/eai.18-12-2018.2286382
Arti Chandani1,*, Rajiv Divekar2, Abdus Salam1, Mita Mehta3
  • 1: Symbiosis Institute of Management Studies
  • 2: Symbiosis International (Deemed University), Pune
  • 3: Symbiosis Institute Of Management Studies (Sims) Symbiosis International (Deemed University), Range Hills Road, Khadki, Pune – 411 020, Maharashtra State, India
*Contact email: arti.chandani@sims.edu

Abstract

Indian banking sector is going through a tough phase where the GNPA (gross Non-performing assets) are all time high and there seem to be no respite in this coming quarter, at least. An asset is classified as NPA (Non-Performing Assets) which ceases to generate income for a bank. The gross Non-performing asset ratio stood at 11.5% in March, 2018 and this could reach to 12.2% by March 2019 (RBI financial stability report). There seems to be some respite on this increase where GNPA declines from 11.5% in March 2018 to 10.8% in September, 2018 (RBI financial stability report). India has seen various debt resolution mechanism namely BIFR (Board for Industrial and Financial Reconstruction), CDR (Corporate debt restructuring), SARFAESI (Securitization and reconstruction of financial assets and Enforcement of Securities Interest) Act, 2002 to IBC (Insolvency and Bankruptcy Code) in 2016. Insolvency and bankruptcy code (IBC) 2016 was enacted in India in May 2016 with the intent of providing a solution which is efficient and time bound. The code has a time frame of 180 day and extension of 90 days which makes a total of 270 days for a company to “resolve or liquidate”. Immediately after passing resolution of IBC in Parliament in May, 2016, NCLT (National Company Law Tribunal) was constituted on 1st June, 2016. It started receiving cases of insolvency and bankruptcy from end of 2016 and presently NCLT has 11 benches through which it operates.