Many infrastructure companies are going through Corporate Insolvency Resolution Process (CIRP); some of them were also in the first target list of the Reserve Bank of India (RBI), wherein 12 companies were identified in June 2017 to proceed in under the code.
The slippages tend to mars banks profitability, but the tide seems to be turning with sharp reduction in SMA 2 cases and better NPA recovery prospects.As much as Rs 5 trillion of bank loans have deteriorated into non-performing assets NPAs in fiscal 2018, taking the total slippages in the past three fiscals to Rs 13 trillion.
PR Jaishankar, Chief General Manager, India Infrastructure Finance Company Ltd (IIFCL) says that old models of development financing need a complete overhaul. He feels while development financing still holds relevance, it needs to be viewed in the context of the dynamic needs of the emerging environment.
The establishment of a National Company Law Tribunal (NCLT) and its Appellate Tribunal (NCLAT) will provide for an efficient, timely and one stop-shop dispute resolution mechanism, preventing fragmentation of disputes relating to companies before multiple forums.
India Ratings and Research (Ind-Ra) has revised its gross domestic product (GDP) growth forecast for FY17 upwards to 7.8 per cent from its earlier forecast of 7.7 per cent. The upward revision has been prompted by the progress of monsoon and the sowing of kharif crops so far. With the exception of the East and Northeast, the rainfall in other regions of the country has been more than the long period average.
The one thing, which is commonly heard in the corridors of the financial world, is the looming concern as regards the huge NPA that banks are currently saddled with. Long drawn processes pertaining to insolvency has taken a toll on the credit realization in the country.