A fair playing field for ARCs to rival our new bad bank

News: ARCs should be treated equally with National Asset Reconstruction Company Ltd (NARCL). In many countries, the national bad banks, set up to help clean the balance sheets of banks, make losses. This is because they buy non-performing assets (NPAs) from banks at inflated value, and sell them at market value after efforts to revive… Continue reading A fair playing field for ARCs to rival our new bad bank

IBC process needs a re-look – Explained, pointwise

Introduction Many experts are questioning the Insolvency and Bankruptcy Code (IBC) and its effectiveness. Recently, The IBC process for the sale of Videocon to the Vedanta group resulted in a haircut of a whopping 95.85 percent. This means the banks will recover only 4.15 percent of their total admitted claims of Rs 64,838 crore. The… Continue reading IBC process needs a re-look – Explained, pointwise

Insolvency and bankruptcy code – present challenges: Explained, pointwise

Source: The Hindu  Syllabus: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Relevance: The Insolvency and Bankruptcy Code (IBC) is the key instrument aimed to address corporate distress. Introduction Recent National Company Law Tribunal (NCLT) rulings have put the spotlight on the IBC. The Insolvency… Continue reading Insolvency and bankruptcy code – present challenges: Explained, pointwise

Asset Reconstruction Company – Concepts Simplified | Prelims Capsules 2021

The concept of Asset Reconstruction Company is very important for UPSC exam due to the proposal of setting up bad banks. This proposal was put forward by the government in the recent Union Budget 2021-22. What is an Asset Reconstruction Company (ARC)? Asset Reconstruction Company (ARC) is a specialized financial institution that buys the Non-Performing Assets… Continue reading Asset Reconstruction Company – Concepts Simplified | Prelims Capsules 2021