Corporate Insolvency Resolution Process Under the Insolvency and Bankruptcy Code 2016 Its impact on the Banking Sector and Non Performing assets

Abstract

This thesis aims to understand the impact of the recently enacted Insolvency and Bankruptcy Code 2016 on the banking sector and Non-Performing Assets. This thesis focuses on the exit policy from the market because, in a competitive business environment, the failure of businesses is a natural phenomenon, but the manner in which such failure is dealt with by the economy indicates the maturity of the country s policy framework. Therefore, if a company is in financial distress and unable to pay its loan, then a proper framework should be in place that helps in its revival or provides an easy exit if the revival is not possible. The Corporate Insolvency Resolution Process under the Code has introduced such a revival framework, and it has significantly newlineimpacted the banking sector as they are the largest lenders to companies and if these companies default in their payments, then it results in the increment of the bank s Non-Performing Assets. newline