NEW DELHI: The President's assent to the ordinance to amend the Insolvency and Bankruptcy Code (IBC) that will bar defaulters from bidding for the stressed assets on Friday received thumbs up from stakeholders who described it as a major step towards "providing comfort to incoming new investors. "Another impact of the ordinance is to treat personal guarantors to corporate debtors in the same way as the corporate debtor. "The ordinance is a major step towards creating a level playing field and providing comfort to incoming new investors, foreign players that process of resolution would be very transparent," British consulting multinational KPMG in India Partner Manish Aggarwal said. "It also signals that resolution process will ensure that existing sponsors who are covered by these amendments directly or indirectly cannot retain control of their companies at the cost of lenders by seeking huge hair cuts and being back in business," he added. NPAs , or bad loans , in the Indian banking sector have crossed the staggering level of Rs 8 lakh crore, of which more than Rs 6 lakh crore are in the books of state-run banks.

Source: Economic Times November 23, 2017 15:11 UTC