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Insolvency

By Manbir Sandhu , 4 October 2025
I

Insolvency Law Key to Reducing Banks’ NPAs, Official Highlights

A senior banking official has credited India’s Insolvency and Bankruptcy Code (IBC) with significantly reducing non-performing assets (NPAs) in the banking sector. By providing a structured framework for resolving stressed assets, the law has enhanced recovery rates and improved banks’ balance sheets. Analysts note that IBC has accelerated resolution timelines, introduced transparency in debt restructuring, and strengthened creditor rights, thereby fostering confidence among lenders and investors.

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  • Insolvency
  • Law
  • Banking

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