NPAs in large corporates have more or less stabilised: ARCIL CEO
1 min read 15 Dec 2021, 05:30 PM ISTHowever, when it came to retail sector, Sanjay Tibrewala CEO of Pheonix ARC said that a lot of loans have been restructured especially due to the coronavirus pandemic, and it has led to stifling to NPAs.
PremiumThe volume of non performing assets (NPAs) in the large corporate sector have more or less stabilised after the introduction of asset quality review (AQR) by Reserve Bank of India (RBI), said Pallav Mohapatra, CEO of ARCIL at 14th mint Annual Banking Conclave.
However, when it came to retail sector, Sanjay Tibrewala CEO of Pheonix ARC said that a lot of loans have been restructured especially due to the coronavirus pandemic, and it has led to stifling to NPAs.
"There might be one more outburst of NPAs. Whether it will be as bad as in 2010 scenario, there is no definite answer, but I feel there will be one more flare up of NPAs in the coming future," Tibrewala said.
On the insolvency and bankruptcy code, Aniruddha Sen, Partner, Trilegal said: "There are some gaps with the IBC, but on paper, it's a good law. The biggest issue is the judicial system. The availability of tribunals and justices to apply the law correctly. There is a case for more. Overall, IBC is a case of good law but it has been frustrated by the fact that its novel, which is why I think it has led to slightly less than expected performance."
"IBC has worked well. It is the basic question of the asset that's there in the system. Now the only thing where IBC erred to some extent was there are not too many benches and it started working as a typical court. Also there are no good cases that are being referred to the IBC," said RK Bansal, CEO, Edelweiss ARC said
