#npa in india

[npaconsultant-stuff-blog]

NPA Consultant in India is a Private Limited headquartered at Mumbai We provide various type of NPA in India services like legal, financial etc Proper management of npa is necessary NPA Consultant has a proper team of every field like legal, banking, finance etc

[pebblegalaxy]

Comparing the Economic Legacy of Finance Ministers P. Chidambaram and Nirmala Sitharaman: A Decade of Transformation

A Comparative Analysis of Finance Ministers: P. Chidambaram vs. Nirmala Sitharaman Introduction The role of a finance minister in any country is pivotal, determining the trajectory of economic growth, fiscal stability, and overall national prosperity. India, being one of the largest economies in the world, has seen significant changes under the stewardship of different finance ministers. Two…

[finlender]

 In the world of finance, Non-Performing Assets (NPAs) are a significant concern for both lenders and borrowers. Finlender, a leading name in the financial sector, offers specialized solutions to manage and mitigate the challenges posed by NPAs. Here's how Finlender can assist in effectively handling NPA loans.

Understanding NPAs

An NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. NPAs are a critical issue for banks and financial institutions as they impact profitability, liquidity, and overall financial stability. Effective management of NPAs is crucial to maintain a healthy balance sheet and sustain business growth.

Finlender's Approach to NPA Loans

Comprehensive Assessment

Finlender starts with a thorough assessment of the NPA situation. Our team of experts evaluates the borrower's financial status, reasons for default, and the overall viability of the loan. This comprehensive analysis helps in understanding the root cause of the problem and devising a tailored strategy for resolution.

Restructuring and Refinancing

One of the key services offered by Finlender is loan restructuring and refinancing. We work closely with borrowers to modify the terms of the loan, making it more manageable and aligned with their current financial capabilities. This may include extending the repayment period, reducing interest rates, or converting the loan into equity. Such measures can provide borrowers with the breathing space needed to get back on track and avoid further defaults.

Asset Recovery and Legal Support

For cases where restructuring is not viable, Finlender provides robust asset recovery solutions. Our team is well-versed in the legal intricacies of debt recovery and works diligently to reclaim the outstanding amount through the sale of collateral or other legal means. This process is conducted transparently and efficiently to minimize losses and ensure fair outcomes for both parties.

Risk Management and Monitoring

Finlender emphasizes proactive risk management and continuous monitoring of restructured loans. We implement stringent monitoring mechanisms to track the performance of restructured accounts and take timely corrective actions if necessary. This approach helps in preventing the recurrence of NPAs and maintaining financial discipline.

Advisory Services

Beyond immediate solutions, Finlender offers advisory services to help clients strengthen their financial practices and avoid future NPAs. We provide insights on credit risk management, financial planning, and regulatory compliance, empowering clients to make informed decisions and build a resilient financial structure.

Why Choose Finlender?

Finlender stands out for its customer-centric approach, expertise, and commitment to delivering effective solutions for NPA management. Our deep understanding of the financial landscape, coupled with innovative strategies and personalized service, makes us the preferred partner for handling NPA loans. With Finlender, clients can navigate the complexities of NPAs with confidence and secure their financial future.

In conclusion, managing NPAs requires a strategic and well-coordinated approach. Finlender offers a comprehensive suite of services to address every aspect of NPA loans, ensuring sustainable solutions and long-term financial health. Partner with Finlender to effectively tackle NPA challenges and achieve financial stability.

READ MORE...NPA and OTS Finance Private Equity Project Finance Corporate Finance Company in India Finlender

[txttletale]

hello!! came across you recently and read a bunch of your posts, and I’m really impressed with the way you always keep focus on how [x subject] relates to material reality and action/goals. if you don’t mind answering, I was wondering what kind of actions (besides debating/critique, which is what I’m able to see from Social Media Site) do modern day communists do to build revolution? I’m sure this varies wildly, but it’s hard for me to imagine when imperial power is so strong. thanks!

yeah, so obviously--as you said--this varies. there's no universal answer to this one, because what tactics are effective and possible for a revolutionary organization vary immensely. like, there are places in the world right now where people are still fighting protracted people's wars--the EZLN in mexico, Naxalites in india, and the NPA in the phillippines, etc.

assuming, however, that you're talking about an imperial-core or a semiperipheral perspective--there are a lot of things that communist organizations can do. obviously, revolution isn't in the cards for the near future, any basic analysis shows that very conclusively. the main things that communist organizations can do in these circumstances is build class consciousness.

now, a lot of groups think that this means simply 'disseminating critique and newspapers', but i think that's an un-marxist understanding of class consciousness. you cannot persuade the working class into going from zero to revolutionary, no matter how effective your propaganda. you have to help people organize and help them fight for causes--people are only going to believe in the possiblity of mass action if they live class struggle, if they get actual experience of engaging in political struggle and making real change in the world.

alright, so what does that look like? first of all, it doesn't look like supporting bourgeois parliamentary parties. they are a black hole that sucks up working class organization and uses it to sustain a cottage industry of wealthy legislators, lobbyists and consultants.

things that i've personally seen happen include:

giving out free food/hygiene products/other necessities

contributing to and organizing mutual aid networks

rebuilding and renovating defunct community buildings

counterprotesting fascists trying to intimidate refugees

mobbing immigration police to prevent deportations

showing up to picket lines and anti-austerity/solidarity protests

scanning and uploading previously unavailable socialist writing

establishing and aiding copwatch networks

and to be clear--these are tactics! they are not an end goal--they are not part of the world we ultimately want to see--doing these things does not take us along a path to socialism. there is the difference between participating in reformist struggles as a tactic for building class consciousness and being reformist--the latter means seeing these things as ends, doing them with the belief that they can be permament solutions--the former means seeing this things as means, things people can get involved in and gain a genuine and personal understanding of class struggle.

ultimately i think the #1 job of any serious revolutionary organization is to build class consciousness and solidarity. and while i do think that leafleting and stickering and putting out pamphlets and newspapers and essays and yes, even silly little posts on my silly blog, can play a small role in that--ultimately most people will not become communists unless they see communists making real change in the world around them.

(addendum: in addition to all this, many revolutionary communist organizations often also do the sort of thing that it's not advisable to talk about online)

[pannaginip]

Northern Dispatch: Cordillera rights group welcomes CHR probe into aerial bombings

The Cordillera Human Rights Alliance (CHRA) has welcomed the statement of the Commission on Human Rights national office to investigate the spate of aerial bombings in the region committed by the Armed Forces of the Philippines (AFP) during its offensive against the New People’s Army (NPA).

The organization has documented at least four aerial bombings, including the June 7 airstrike in Balbalan mentioned by the CHR. Another incident occurred in April following a clash between the NPA and the military on the borders of Ilocos Sur and Abra, which forced residents near the site to flee. Additional airstrikes were recorded during the AFP’s offensive in Sallapadan, Abra, last February and in March 2023 in Brgy. Gawaan, Balbalan.

The CHRA also referenced two aerial strikes during the Duterte administration, including one involving the use of white phosphorus in Malibcong, Abra, in March 2017.

During the same period, groups from the Philippines, alongside organizations from Pakistan, Myanmar, West Papua, Palestine, and India, launched a solidarity platform to monitor and campaign against bombings in rural communities.

Human rights group Karapatan reported a significant increase in the number of civilians affected by AFP bombing runs under the administration of Ferdinand Marcos Jr., rising from 2,354 in 2022 to 20,391 in 2023.

2024 Aug. 21

[milkboydotnet]

Standing with the Adivasi People and the People's War in India

Since the founding of the Communist Party of India (Maoist) in 2004, the Indian state has unfurled relentless counterinsurgency operations, including Operation Green Hunt and Operation SAMADHAN-Prahar, in hopes of destroying the revolutionary movement. The Indian government has liberally used the 1967 Unlawful Activities (Prevention) Act (UAPA) against those it accuses of having links to the CPI (Maoist). Like the Anti-Terrorism Act in the Philippines, which has been used to suppress dissent and target those suspected of links to the Communist Party of the Philippines (CPP) and the New People's Army (NPA), this law allows for warrantless arrests and extended periods of detention, robbing the people of basic human rights in the name of "security." Under Narendra Modi’s fascist Brahmanic Hindutva regime, the repression against the people has only intensified.

India is considered a key partner in advancing U.S. strategic interests in Asia, particularly in countering China's influence in the region. This partnership includes joint military exercises, military cooperation, and weapons trade. Like the US-Marcos regime in the Philippines, the killings and massacres committed by state forces in the countryside are growing more frequent under the US-Modi regime.

Operation Kagaar, launched in January 2024, is the latest phase of the Indian government's counterinsurgency efforts. There have been numerous instances of harassment, abductions, torture, rape, aerial bombings, and other forms of fascist attacks against the people, particularly targeting the indigenous Adivasis. The Adivasis, comprise over 8% of India's population (104.2 million, roughly the size of the Philippines' population) and encompass more than 600 tribes primarily located in central India. As of June 2024, Operation Kagaar has claimed 130 lives, including the execution of eight Adivasi peasants in Chhattisgarh on May 24, 2024. The operation's focus has been the Abujhmaad (Maad) region in Chhattisgarh, a remote, resource-rich, mountainous area that is a revolutionary stronghold and home to a significant Adivasi population. The revolutionary movement, led by the Communist Party of India (Maoist) and the People’s Liberation Guerrilla Army (PLGA), has found strong roots among the Adivasi people, taking up revolutionary struggle to protect their ancestral lands. In 2006, then Indian Prime Minister Manmohan Singh famously said that the Maoists were India's greatest internal security threat. In 2009, Singh remarked to parliament, “if left-wing extremism continues to flourish in important parts of our country which have tremendous natural resources of minerals and other precious things, that will certainly affect the climate for investment." His words underscore that these attacks on the people are motivated by imperialist plunder. Comrade Venu elaborated further, telling author Arundhati Roy, “They want to crush us, not only because of the minerals, but because we are offering the world an alternative model.” The CPI (Maoist) and the PLGA, through people's war, pose a significant threat to the reactionaries in power by offering the exploited and oppressed masses of the world genuine solutions to their basic problems and a viable alternative to capitalist imperialism. The CPI (Maoist) and the International Committee to Support the People’s War in India (ICSPWI) have called for a campaign to oppose Operation Kagaar and support the resistance of the Adivasi people. The Communist Party of the Philippines, which also wages a people's war and faces many of the same forms of repression including aerial bombings, has declared June 20-July 20, 2024, as a month of solidarity with the Indian struggle.

People Organizing for Philippine Solidarity (POPS) urges all anti-imperialists, progressives, and their organizations, to support the Adivasi people's resistance and the advancement of the people's war in India. We recognize that people's war is critical to ending the reactionary state's counterinsurgency and liberate the broad masses from feudal exploitation and imperialist domination in India, the Philippines, and in all semi-colonial and semi-feudal countries.  POPS stands in solidarity with the Indian people in their struggle against fascism, feudalism, imperialism, and the genocidal Operation Kagaar!

From India to the Philippines: People's War is for People's Peace!

full statement IG post [shortened statement]

[globalzipcode]

LATEST POSTAL CODE WORLDWIDE 2023

HOW TO FIND A ZIP CODE

Finding the postal codes you need for your post is as simple as a few clicks. First, select your country of choice to be taken to a list of the administrative divisions of that country. Then select the area where you are trying to send your letter for a list of the available zip codes for that area.

Not sure of the country or the administrative division to choose? Or your country/region is missing in the list? Try entering the address into the search at the top of the page to lookup the right code to use

A postal code (also known locally in various English-speaking countries throughout the world as a post code, postcode, ZIP Code or PIN) is a series of letters or digits or both, sometimes including spaces or punctuation, included in a postal address for the purpose of sorting mail.

The characters used in postal codes are

The Arabic numerals “0” to “9”

Letters of the ISO basic Latin alphabet

Spaces, hyphens

WHAT IS A ZIP CODE?

A ZIP Code is a postal code that is used by the United States Postal Service. It was introduced in 1963, the basic format comprised of five digits. However, an extended ZIP+4 code was introduced in 1983. It comprised of five digits of the ZIP Code having a hyphen and four digits that designated a more specific location.

WHAT IS A POSTAL CODE?

A postal code is also locally known as postcode, ZIP code, postcode, or PIN in different English-speaking countries throughout the world. It is a series of digits or letters or both, and sometimes it also involves the use of spaces or punctuation added in a postal address in order to sort mail.

The characters that can be used in postal codes are:

Letters of the ISO basic Latin alphabet The Arabic numerals 0 to 9 Spaces, hyphens

There are many different synonyms of postal code:

CAP: The standard term used in Italy.

Eircode: The standard term used in Ireland.

CEP: The standard term used in Brazil.

NPA: The standard term used in Italian-speaking Switzerland and French-speaking Switzerland.

PIN: The standard term used in India.

Postal Code: The general term used in Canada.

PLZ: The standard term used in Austria, Germany, Liechtenstein, and German-speaking Switzerland.

Postcode: It is popular in many English-speaking countries.

ZIP Code: The standard term used in the United States and the Philippines.

PSC: The standard term used in the Czech Republic and Slovakia.

In February 2023, 117 of the 190 member countries of the Universal Postal Union had postal code systems. There were only a few postal code systems that are alphanumeric, and most of them are numeric. Usually, postal codes are assigned to geographical areas.

FINDING YOUR POSTAL CODE

Country Zipcode is a platform where you can find your current location, zipcode, Pincode, postal code, and more. It is easy to do it with just a few clicks. First of all, choose the country, and you will get a list of administrative divisions of that country. Then you will need to select the area where you want to send the post. Find the list of available zip codes for the specific location.

If you are not sure about the country or the administrative division, the country/region is missing from the list. Enter the address into the search at the top of the page for zipcode lookup. Moreover, use our country map to find the zip / postal code you are looking for.

[wagonslearning]

Lending institutions are facing the heat with many accounts turning into Non-Performing Assets (NPA) post-pandemic. The difficulty in money recovery and uncertain cash flow is a huge deterrent to financing companies and banks in India, affecting balance sheets and bottom lines.

One of the major roadblocks in the process of debt recovery is the absence of deep collaboration between the borrower, & the collection & recovery teams

Enroll with Wagons Credit Collection and Recovery Skills Program, and learn about effective communication for result-oriented engagement and different ways to implement variation in relationship styles based on customer cohorts.

Program timings :- 

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Click on the link below to register 🔗

https://wagonseducation.com/home/course/credit-collection-and-recovery-skills-level-2/102

For more information visit:

https://www.wagonslearning.com/

[amansagaripd]

IFCI Share Price Forecast 2025 , 2026 to 2030

IFCI Limited, a historic name in India’s financial sector, has played a pivotal role in the country’s industrial development since its establishment in 1948. As a major financial institution, IFCI focuses on providing funding and investment solutions for various sectors. Despite facing significant challenges, including high non-performing assets (NPAs) and fluctuating market dynamics, investor interest remains high. This article provides insights into the IFCI Share Price Target 2025 and 2030, examining the factors influencing its potential trajectory.

An Overview of IFCI Limited

IFCI Limited, originally known as the Industrial Finance Corporation of India, has undergone several transformations since its inception. The organization has expanded its service offerings to include project financing, loan distribution, and various investment options across multiple sectors such as infrastructure and manufacturing. Despite its long-standing presence, IFCI has been under pressure due to financial instability, particularly in managing NPAs, which have hampered its growth and affected investor sentiment.

IFCI Share Price target 2024

In the short term, the IFCI Share Price Target 2024 is expected to be in the range of ₹35 to ₹98 . This estimate reflects ongoing economic challenges and the company’s efforts to regain financial stability. The following factors will significantly impact the share price:

Economic Conditions: The overall health of the Indian economy plays a crucial role in determining IFCI's performance. A rebound in economic growth, characterized by increased industrial activity and investments, could lead to a greater demand for the financial services that IFCI provides, potentially boosting its share price.

Government Policies: Being a public sector entity, IFCI is often supported by government initiatives aimed at enhancing financial stability and economic growth. Any favorable changes in policies or additional government funding could enhance market confidence, positively impacting IFCI's stock.

NPA Management Strategies: The ability to manage and reduce NPAs will be critical for IFCI. Implementing effective recovery strategies and improving asset quality could restore investor confidence and lead to a more favorable perception of the company.

While these factors suggest a pathway for improvement, external pressures such as inflation and global market fluctuations may continue to challenge IFCI’s performance in 2024.

IFCI Share Price target 2025

Looking forward to 2025, the IFCI Share Price Target 2025 is forecasted to fall between ₹98 and ₹145. This outlook hinges on several strategic developments within the company:

Corporate Governance Improvements: Enhancing corporate governance practices can attract institutional investors, fostering a more positive investment environment. By demonstrating transparency and accountability, IFCI could improve its reputation and potentially enhance its stock valuation.

Sector-Specific Growth: IFCI’s focus on financing critical sectors like infrastructure and manufacturing aligns it well with government initiatives designed to stimulate industrial growth. Increased project financing in these areas could result in higher revenue generation, benefiting the company’s overall financial health.

Interest Rate Environment: The direction of interest rates, as set by the Reserve Bank of India, will significantly influence IFCI's growth prospects. A stable or favorable interest rate environment can encourage lending, directly impacting the company’s profitability.

By 2025, the successful implementation of strategic improvements and a favorable economic climate could create a more optimistic outlook for IFCI’s share price.

IFCI Share Price target 2030

For long-term investors, the IFCI Share Price Target 2030 presents a more ambitious forecast, with estimates ranging from ₹330 to ₹450. This optimistic scenario assumes that IFCI will effectively navigate its current challenges and leverage future growth opportunities:

Digital Transformation: As the financial sector embraces digital technologies, IFCI’s ability to integrate fintech solutions will be essential for maintaining competitiveness. Successful digital adaptation could enhance operational efficiency and customer engagement, leading to increased profitability.

Commitment to Sustainable Finance: The growing emphasis on Environmental, Social, and Governance (ESG) considerations means that financial institutions must align their operations with sustainable practices. IFCI’s commitment to ESG principles could attract socially responsible investors and improve its market valuation.

Economic Growth and Infrastructure Development: India’s long-term economic growth and ongoing infrastructure projects present significant opportunities for financial institutions. If IFCI positions itself effectively in the project financing sector, it could experience substantial revenue growth by 2030.

Overall, the stock performance of IFCI will depend on its ability to adapt to changing market dynamics, manage its financial strategies effectively, and embrace new technologies.

Key Influencing Factors :

Across these time frames, several overarching factors will influence IFCI’s share price:

Macroeconomic Indicators: Changes in inflation, GDP growth, and overall economic stability will significantly affect the company’s performance.

Regulatory Environment: New financial regulations can create either opportunities or challenges for IFCI, impacting its operational landscape.

Debt Management: The company’s ability to manage debt and secure additional funding will be critical to its financial health.

Read Also - IFCI Ltd Share Price has been on a positive trajectory for a long period on the National Stock Exchange (NSE). In this article, we will take you through the factors affecting the IFCI Ltd Share Price NSE and IFCI Ltd Share Price Target in upcoming years.

Conclusion

Investors considering IFCI Limited should carefully weigh the associated risks and opportunities. The IFCI Share Price Target for 2024 suggests a cautious outlook amid ongoing challenges, while the IFCI Share Price Target for 2025 presents a more optimistic scenario as the company seeks to stabilize its operations. For long-term investors, the potential for significant growth by 2030 exists, provided that IFCI successfully navigates its current challenges and aligns with evolving market trends.

In summary, while IFCI presents a compelling investment opportunity, it is essential for investors to monitor both the company's internal developments and external economic conditions closely.

[npaconsultant-stuff-blog]

NPA Consultant in India is a Private Limited headquartered at Mumbai We provide various type of NPA in India services like legal, financial etc Proper management of npa is necessary NPA Consultant has a proper team of every field like legal, banking, finance etc

[nbfcregiindiabd]

Complete Guide to Setting Up an NBFC in India

The Non-Banking Financial Company (NBFC) sector is a critical component of India's financial ecosystem, providing credit and other financial services where traditional banks may not operate. For anyone looking to enter this industry, setting up an NBFC involves understanding various regulatory norms, compliance requirements, and the necessary documentation. This comprehensive guide will walk you through the essential steps, highlighting the latest updates from the Reserve Bank of India (RBI).

Types of NBFCs in India

Based on Type of Liabilities

Deposit-Accepting NBFCs: These NBFCs accept deposits from the public, similar to banks. However, they are not allowed to issue bank notes or provide checking account facilities.

Non-Deposit-Accepting NBFCs: These NBFCs do not accept deposits from the public but raise funds through other means, such as issuing bonds or debentures.

Based on Size

Systemically Important Non-Deposit Holding Companies (NBFC-NDSI): These are large NBFCs that can pose a significant risk to the financial stability of the system.

Other Non-Deposit Holding Companies (NBFC-ND): These are smaller NBFCs that do not pose a systemic risk.

Based on Activities

Asset Finance Companies (AFCs): These NBFCs primarily engage in financing assets like machinery, vehicles, and equipment.

Loan Companies: These NBFCs offer various types of loans, including personal loans, home loans, education loans, and more.

Investment Companies: These NBFCs invest in securities, such as shares and bonds.

Infrastructure Finance Companies (IFCs): These NBFCs specialize in financing infrastructure projects, such as roads, bridges, and power plants.

Microfinance Institutions (MFIs): These NBFCs provide small loans to low-income individuals and groups, often in rural areas.

Housing Finance Companies (HFCs): These NBFCs primarily focus on providing home loans.

Merchant Banking Companies: These NBFCs offer various financial services, including underwriting, mergers, and acquisitions.

Core Investment Companies (CICs): These NBFCs primarily invest in other companies.

Each type of NBFC is regulated differently based on its risk profile, asset size, and specific focus areas

Regulatory Requirements for NBFC Registration

The RBI has established a robust regulatory framework to ensure the stability and integrity of the NBFC sector. The key requirements for registering an NBFC in India include:

  Minimum Net Owned Fund (NOF): The latest RBI guidelines have increased the NOF requirements in a phased manner: NBFC-ICC, NBFC-MFI, and NBFC-Factors: NOF requirements will increase to ₹10 crore by March 31, 2027. Currently, these companies need to have ₹5 crore (₹2 crore for the North-Eastern region) by 2025. NBFC-P2P, NBFC-AA, and NBFCs without public funds or customer interfaces continue with an NOF requirement of ₹2 crore

Company Incorporation: The entity must be registered as a Private Limited or Public Limited company under the Companies Act, 2013.

Directors' Experience: At least one director must have relevant experience in the banking or NBFC sector, emphasizing the need for professional expertise in managing NBFC operations

NPA Classification: The RBI has introduced stricter norms for classifying Non-Performing Assets (NPAs). NBFCs must adhere to a 90-day NPA classification norm by March 31, 2026. The phased approach aims to enhance risk management across all NBFC categories

Internal Capital Adequacy Assessment Process (ICAAP): NBFCs must conduct an internal assessment of their capital needs based on their business risks, aligning with the guidelines set for commercial banks. This requirement encourages better internal risk management techniques for NBFCs

RBI Approval: A detailed application, including the company’s business plan, audited financial statements, and other relevant documents, must be submitted to the RBI for approval.

Key Documents Required for NBFC Setup

Setting up an NBFC involves preparing and submitting a series of essential documents to ensure compliance with regulatory standards. The key documents include:

Incorporation Certificate: Proof that the business is registered as a Private Limited or Public Limited company.

Memorandum of Association (MOA) and Articles of Association (AOA): These outline the company’s objectives and operational guidelines.

Detailed Business Plan: The business plan should include an overview of the NBFC’s strategy, market analysis, and financial projections.

KYC Documents of Directors and Shareholders: Identity and address proofs such as PAN, Aadhaar, and passport copies.

Audited Financial Statements: Financial statements for the past three years, validated by a certified Chartered Accountant.

Net Worth Certificate: A certificate from a CA confirming compliance with NOF requirements.

Bankers’ Report: A report from your banker detailing the company’s account status, creditworthiness, and available funds.

Conclusion

Establishing an NBFC in India is a promising venture that comes with regulatory complexities. The recent updates from the RBI, such as the increased NOF requirements and stricter NPA classifications, reflect the evolving landscape of the financial sector. By understanding the types of NBFCs, meeting the latest regulatory requirements, and preparing the necessary documents, aspiring entrepreneurs can navigate the registration process with confidence.

Consulting with financial experts or regulatory advisors can further streamline the setup process and ensure full compliance, positioning your NBFC for success in India’s dynamic financial market.

Source: https://nbfcadvisory.com/complete-guide-to-setting-up-an-nbfc-in-india/

[finlender]

FinLender India’s No.1 and Largest NPA Finance Company with Proven Track Record: We are exclusively working for NPA Segment, whether you can say it as NPA Funding or OTS funding in India, NPA Retrieval, Loan for NPA, NPA Solutions, NPA Takeover, Finance for NPA Loan , OTS Finance, OTS Funding, Finance facility for NPA accounts, Transfer of NPA accounts, etc"

[acquisory]

Insolvency and Bankruptcy Code — IBC-BOON OR BANE

Introduction

The Insolvency and Bankruptcy Code (IBC), 2016 has been enacted to merge the existing laws related to insolvency and bankruptcy. The IBC involves standard steps which is viable and understandable. So, everyone, be it creditors, debtors, companies, or shareholders etc. shall have a standard perform for any matters relating to insolvency.

“The IBC has been a real game changer in the Indian economy’s business reform initiatives in the last twenty five years. Ease of doing business is ironically the base premise for enacting the comprehensive Code to exit from the business.”

The IBC has made a spectacular progress in short span. The recent orders issued by the Adjudicating Authorities are beginning to have profound impact on defaulting business owners as the message is loud and clear “settle dues or cede control”.

Why was IBC enacted?

Initially there was Presidency Towns Insolvency Acts, 1909 which was applicable in Kolkata, Chennai and Mumbai and the Provincial Insolvency Act 1920 for the rest of India, for regulating the insolvency laws. The Act applied to individuals and partnerships but exempted corporations from within its ambit. Post Independence, the bankruptcy and insolvency were specified in Constitution and with the passage of time there were numerous acts which governed Insolvency and bankruptcy issues such as the Sick Industrial Companies (special provision) Act, 1985 (“SICA”), SARFAESI Act, 2002, the Recovery of Debts due to Banks and financial institutions Act, 1993 (“RDDBFI Act”), Companies Act, 1956 as well as Companies act, 2013.

But these regulations have not yielded satisfactory results. These regimes were high fragmented, borne out of multiple judicial forums resulting in lack of clarity and certainty of jurisdiction. Further, we had various adjudicatory bodies/Tribunals to deal with such issues and matters under different Acts stated above.

So, this led to the unclear knowledge about the authority as to whom the parties should approach in the related matters. Hence, this resulted in overlapping of decisions. There was no common regulatory authority to regulate the rights of the secured or unsecured creditors, employees etc. or to determine the priority of their claims. Large number of stressed assets such as NPAs with low recovery rates due to a lack of enabling environment for the enforcement of creditor’s rights. Moreover there was no adequate or credible data regarding the assets, indebtedness etc. of companies which further heighten the problems. Hence large number of legislations and non-statutory guidelines have made the recovery of debt a complex and time consuming process.

The IBC is a welcome overhaul which has directly addressed in resolving the insolvency and bankruptcy issues of corporates and simultaneously serving creditors and public financial institutions by helping them in recovery of bad and distress loans and ultimately tackling Non Performing Assets. The Main objective of Code is distribution of the effects of a debtor in the most expeditious, equal and economical mode. The Code lays down the complete procedure of Insolvency Resolution process which involves collating claims and reviewing the requisite financial and other relevant records of the company. The introduction of this Code has brought in ample opportunities for professionals ranging from being appointed as official liquidator to managing the financial health of corporates in case of distressed assets.

Present Scenario

Today we have IBC, 2016, which provides a…

Read more: https://www.acquisory.com/ArticleDetails/52/Insolvency-and-Bankruptcy-Code--IBC-BOON-OR-BANE

[npaconsultant1234]

Private Equity firms in india | NPA Consultant

Leading NPA consultant offering expert services to private equity firms in India Unlock value and maximize returns with our specialized solutions