Lenders should sharpen IBC–2016 to improve asset quality
Asset quality in the banking system has improved, with gross non-performing assets reaching a historic low of 2.2 percent in September 2025. While several factors have contributed to this improvement, the role of the ‘Insolvency and Bankruptcy Code 2016 (IBC16)’ cannot be undermined. Among the various debt resolution mechanisms introduced in the post-reform banking system,…