Empowering Nari Shakti: 1 crore houses allotted to women (See 'Corp Brief') MoS dedicates to nation first-of-its-kind 'Eco-Educational Hub' (See 'Corp Brief') XI BRICS Culture Ministers' meeting concludes in Bhopal (See 'Corp Brief') Railways approves introduction of Daily Itarsi-Madan Mahal Passenger Service (See 'Corp Brief') NI Act - Moratorium protects corporate debtor in respect of insolvency proceedings, but does not grant immunity to natural persons from criminal liability already incurred on account of cheque dishonour: HC (See 'Legal Desk') A&C - If prima facie arbitration agreement exists and non-signatories have shown conduct aligning with contract, referral court should allow arbitrator to finalize list of parties based on detailed evidence: HC (See 'Legal Desk') A&C - Arbitral award is patently illegal if it is rendered in summary manner without allowing parties to lead evidence or be heard on critical pleadings: HC (See 'Legal Desk') 13th BRICS Education Ministers' meeting concludes with Declaration (See 'Corp Brief') IEPFA organises Stakeholder Engagement with Nodal Officers of Companies on Portal 2.0 (See 'Corp Brief') SARFAESI - Any tenancy created after issuance of notice u/s 13(2) without prior written consent of secured creditor, is void ab initio: HC National Handloom Day celebrates Tribal Weaves of India (See 'Corp Brief') SECL leads India in Scientific Mine Closure, Transforming abandoned Mines (See 'Corp Brief') IBC - RBI prudential norms stopping banks from recognising interest income on NPA accounts do not wipe out borrower's obligation to accrue & recognise interest expense in its own financial statements: NCLAT (See 'Legal Desk') Sowa-Rigpa must emerge as Globally Recognised Evidence-Based Healthcare System: Jadhav (See 'Corp Brief') Insurance Division, DFS secures 3rd Rank in Group A Category of Grievance Redressal (See 'Corp Brief') IPR - Registration of defendant's trademark does not bar passing off action where plaintiff establishes prior goodwill, misrepresentation and likely damage: HC (See 'Legal Desk') IndiaAI Mission organised AIKosh Univ Engagement Programme at Chitkara Univ (See 'Corp Brief') A&C - In international commercial arbitration seated in India, ground of ‘patent illegality' u/s 34(2A) is expressly excluded: HC (See 'Legal Desk') Comprehensive measures taken to boost digital infrastructure & cyber security: Jitin Prasada (See 'Corp Brief') Misc - A minor admitted to benefits of partnership firm is not personally liable for debts or liabilities incurred by firm during age of minority - ergo, bank communication declaring minor as wilful defaulter is invalid: HC (See 'Legal Desk') IPC showcases India's Regulatory Excellence at WHO Meeting in Nepal (See 'Corp Brief') Companies Act - Solely because a private bank carries on banking operations as scheduled bank or is bound to follow regulatory guidelines issued by the RBI, it does not acquires character of a statutory body: HC (See 'Legal Desk') GI & Beyond 2.0 Summit showcases India's GI-tagged Handloom and Handicraft Products (See 'Corp Brief') IPR - Test for 'efficacy' u/s 3(d) of Patents Act is not limited to 'therapeutic efficacy' for all substances: HC (See 'Legal Desk') CCI approves combination of many entities into InterGlobe Hotels (See 'Corp Brief') IPR - U/s 9(1)(a) of Trade Marks Act, correct legal test is whether applied mark possesses 'distinctive character', means if it is capable of distinguishing applicant's goods from those of others - YES: HC (See 'Legal Desk') House Panel deliberates on strengthening Human-Wildlife Conflict Mitigation through Technology (See 'Corp Brief') IBC - Private bank's commercial decision on debt assignment or settlement, even if regulated by RBI norms, remains private banking transaction and does not satisfy function test for writ maintainability: HC (See 'Legal Desk') PM-PRANAM Promotes Balanced Use of Fertilizer, Organic Farming (See 'Corp Brief') IPR - In absence of evidence showing acquired distinctiveness or secondary meaning, descriptive mark could not validly remain on Register: HC (See 'Legal Desk') On International Clouded Leopard Day, India strengthens Conservation through Dedicated Action Plan (See 'Corp Brief') Limitation - Single Judge rightly declined to exercise writ jurisdiction in a matter which essentially involves contractual obligations & involves disputed issues of fact: HC (See 'Legal Desk') Tete-a-tete around AI in banking sector often begins with algorithms (See CORP EINSICHT)

Print

RBI Dy Governor highlights critical role of IBC in improving quality of bank assets

Published: Dec 09, 2024

By TIOLCorplaws News Service

NEW DELHI, DECEMBER 09, 2024: THE Insolvency and Bankruptcy Board of India (IBBI) in association with INSOL India organized an International Conclave focusing on “ Insolvency Resolution: Evolution & Global Perspective ”. The event brought together distinguished experts and practitioners from across jurisdictions to share insights and experiences in insolvency resolution.

Mr. M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India graced the occasion as Chief Guest. He highlighted the transformative journey of the Insolvency and Bankruptcy Code (IBC) since 2016, emphasizing its critical role in improving bank asset quality and facilitating substantial pre-admission settlements of underlying debts of over ?10 lakh crore. While acknowledging the substantial progress made in cleaning up banks' balance sheets, the Deputy Governor also underscored potential areas of improvement. The address stressed the importance of collaborative e?orts among stakeholders, with a focus on restructuring and revival, and suggested that detailed studies of IBC cases could provide valuable insights for future lending strategies.

Mr. Ravi Mital, Chairperson, IBBI in his special address highlighted the versatility and transformative potential of the Code, underscoring its role in dismantling the "defaulters' paradise" through signi?cant behavioural changes in the debtor-creditor ecosystem. He noted the remarkable settlement of over 28,000 cases before admission, while also addressing challenges such as time-sensitive nature of value preservation. Emphasizing IBBI's proactive approach, he outlined key regulatory reforms aimed at reducing delays and maximizing asset value. He also mentioned about consideration of innovative approaches like mediation, creditor-led resolution processes, and group insolvency mechanisms.

Mr. Rajnish Kumar, Ex Chairman, State Bank of India delivered the special address. Drawing from his ?rsthand experience as SBI Chairman during the initial stages of the IBC, he characterized the IBC as one of the most signi?cant economic reforms, highlighting its transformative impact on the banking ecosystem. He emphasized that the true success of IBC should not be measured solely by the recovery rate, but by its broader achievements in reshaping the debtor-creditor relationship and enhancing the overall health of the banking sector. He underscored the importance of the Committee of Creditors (CoC) pursuing the larger objective of value maximization.

Dr. Sonali Abeyratne, Technical Director of INSOL International, also delivered the special address. In her address she outlined the organization's core functions and recent initiatives. She speci?cally discussed INSOL International's engagement with INSOL India and emphasized the importance of international collaboration and sharing global best practices in insolvency resolution.

Mr. Dinkar Venkatasubramanian, President of INSOL India, delivered welcome address. In his address, he traced the evolutionary journey of the Insolvency and Bankruptcy Code (IBC) in India. He highlighted the Code's signi?cant impact on the insolvency resolution landscape. He also outlined INSOL India's recent initiatives aimed at strengthening the insolvency ecosystem in the country.

Mr. Rana Ashutosh Kumar Singh, Managing Director, SBI delivered a keynote address. He provided lenders' perspective on the Code, highlighting its phenomenal evolution and signi?cant contribution. Drawing from his international experience in insolvency frameworks, Mr. Singh lauded the IBC's transformative impact on bank pro?ts and asset quality. He emphasized the critical need for maintaining bank health as a cornerstone of achieving the vision of Viksit Bharat , and o?ered constructive suggestions for further improvement.

The Conclave included three panel discussions. The ?rst Panel Discussion was on the theme "Issues, Recent Developments & New Trends in Restructuring & Insolvency Across Jurisdictions". The session was chaired by Mr. Sumant Batra, President, Insolvency Law Academy. The eminent speakers of the session included Mr. Craig Martin, Partner, Global Co-Chair, Restructuring and Managing Partner, DLA Piper; Mr. Jose Carles, Managing Partner, Charles, Cuesta, Spain; Ms. Lauren Tang, Managing Partner, Virtus Law, Stephenson Harwood; and Mr. Debanshu Mukherjee, Co-Founder & Lead, Vidhi Centre for Legal Policy. The session was moderated by Mr. Ashwin Bishnoi, Partner, Khaitan & Co.

The second Panel Discussion was on the theme "Judgment Enforcement, Asset Recovery and Personal Guarantees". The session was chaired by Ms. Anita Shah Akella, Joint Secretary, MCA. The distinguished speakers included Mr. Steven Kargman, Founder & President, Kargman Associates; Ms. Amelia Tan, Counsel, Carey Olsen Singapore LLP; and Mr. Wei Yang, Partner, Kirkland & Ellis, Hong Kong.

The session was moderated by Mr. Anoop Rawat, Partner, Shardul Amarchand Mangaldas & Co.

The third Panel Discussion focused on "Role of Institutional Creditors in Corporate Resolution Across Jurisdictions". The distinguished speakers included Mr. R. Subramaniakumar, MD & CEO, RBL Bank; Mr. Ravi Subramanian Shankar, Partner, Kirkland & Ellis, United States; Mr. Shaun Langhorne, Partner, Cli?ord Chance, Singapore; and Mr. Rajat Agrawal, Head of Acquisitions, Corporate & SME, ARCIL. The session was moderated by Ms. Pooja Mahajan, Managing Partner, Chandhiok & Mahajan.

Two insightful Fire Side Chat sessions were conducted during the conclave. The ?rst session focused on the role of investors in the stressed assets ecosystem, featuring Mr. Arijit Basu, Retd. Managing Director, State Bank of India; Mr. Amit Agarwal, President & Head – Private Credit, Edelweiss Alternatives; and Mr. Shantanu Nalavadi, Managing Director, India Resurgence Asset Management Business Pvt. Ltd. Mr. Basu in his address, noted the positive impact of IBC on debtor-creditor relationship. The session included deliberation on issues related to facilitation of investment, particularly foreign investment and private credit, in stressed asset market.

The second Fire Side Chat session featured representatives from Resolution Applicants including Mr. Hemant Kumar, Executive Director -- Corporate Finance, Dalmia Bharat Group and Mr. Shailesh Apte, President, Group Head-M&A and Growth Strategy, Welspun World, who shared the perspectives of resolution applicants on the issues related to the Code. The session was moderated by Ms. Smiti Tewari, Partner, Khaitan Legal Associates. They discussed the issues related to resolution applicants and importance of development of stressed asset market to achieve IBC's objective of value maximisation.

Large number of stakeholders of the IBC ecosystem, including insolvency professionals, legal ?rms, consulting ?rms, ?nancial creditors, service providers, professionals, regulators, academia and government o?cers joined the Conclave both in physical as well as online mode.

Mr. Jayanti Prasad, Whole Time Member, IBBI, felicitated the esteemed guests of the inaugural session. Mr. Kulwant Singh, Executive Director, IBBI concluded the conclave with a vote of thanks to all participants and stakeholder .

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.