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Insolvency & Bankruptcy Code of India: The genesis and its implementation during COVID times

Research Article

Authors: Vijaya Kittu Manda

Journal Name: GITAM Journal of Management (GJOM); Regular Issue; ISSN: Print ISSN: 0972-740X

Volume Number: 20 (1); April - June 2022

Publication Date: 30 June 2022

Pages: 51-72

Abstract: Banks’ Non-Performing Assets (NPA) eat up the profit pie, erode the precious capital, and turn cancerous, threatening their survivability. The introduction of the Insolvency Bankruptcy Code (IBC), 2016, and its subsequent 2019 amendment added the much-needed legislation strength for handling the troubling borrowers. While IBC was a success, the increase in cases and certain ambiguity in the provisions added pressure to the mounting cases. Following a Qualitative Descriptive Research Method (Observation method), this research attempts to contribute to the research literature on IBC experiences during COVID times. The study finds that banks were placed in a comfortable position because of the relaxation of norms and bringing of moratorium during the COVID-19 pandemic. The NPA levels reaching a six-year low by Q2 2020 is a testimonial to this. The learnings emerging from this research will help banks, the banking regulator in particular, and the banking research community in general, better understand how IBC was implemented.

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