The debt recovery process in the cases of Bhushan Power & Steel Limited, Electrosteel Steels, Essar Steel, and Monnet Steel under the Insolvency & Bankruptcy Code (IBC) is expected to take longer than expected. These firms are among the 12 companies the Reserve Bank of India referred, in June this year, to the National Company Law Tribunal under the IBC. This means that banks will have to wait more to recover whatever they can from the defaulting firms.
This is despite the IBC being a time-bound mechanism for resolution and the entire issue of non-performing assets (NPAs) of public sector banks (PSBs) being in the full glare of media. While the debt recovery mechanism is being made stringent under the IBC and is likely to bring down NPAs, the real issues are not even being discussed in the quarters that matter: government ownership of PSBs and the continuance of such ownership.
Read the full article: http://www.sundayguardianlive.com/opinion/12119-no-one-talking-about-bank-privatisation