New Delhi, July 24 (IANS) Financial creditors have realised claims of approximately Rs 47,426.75 crore in 26 cases under the IBC (Insolvency and Bankruptcy Code) framework, the Rajya Sabha was informed on Tuesday.“The financial creditors have realised claims of approximately Rs 47,426.75 crore in 26 cases where resolution plans are submitted under the IBC framework since its enactment,” said Minister of State for Law and Justice and Corporate Affairs P.P. Chaudhary in a written reply to a question in the Rajya Sabha.
According to Chaudhary, apart from the direct impact in terms of time bound resolution, the IBC has also impacted the borrowing and lending culture in the country.
“As a result, borrowers are no more willing to over-leverage debt to unsustainable levels. Similarly, lenders have also become more careful due to strict NPA provisioning norms laid down by the Reserve Bank of India,” Chaudhary said.
The IBC was enacted in 2016 through which lenders can refer large non-performing assets to NCLT (National Company Law Tribunal) to either find a middle way out or to liquidate the borrower company for recovering loan money.
Financial lenders such as public and private sector banks are ailing from a huge amount of NPAs.
–IANS<br>rv/bg
Source: IANS
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