A Study Of Impact Of Insolvency And Bankruptcy Code On Non- Performing Assets Of Banks

In 2016 Government of India introduced Insolvency and Bankruptcy Code to improve credit availability and growth rate of economy by resolving NPA’s of banks. It has improved credit supply and reduced the cost of debts and nudge the firms for long term loans. An inefficient insolvency and bankruptcy regime acts as a hindrance to the development and progress of banks credit. With IBC, reforms like the setting up of the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) has given a fair and transparent process. Though there are some issues in the implementation of the Code, IBC has become the pillar of the Indian financial system and has helped in creating better banking environment. And helped in continuous economic growth by improving banks financial stability and lending. In this paper we will try to understand the reasons for implementation of the Insolvency and bankruptcy code 2016 and how it has helped banks in recovery of NPAs..