One of the biggest economic reforms in the country over the last decade has been the introduction of the new Insolvency and Bankruptcy Code (IBC Code) in May 2016. It brought in a system for a time-bound resolution of insolvency and bankruptcy cases in India by consolidating various fragmented laws.

The code set the right framework for the financial institutions to clean up their books once and for all and sought to create the best-possible scenario for keeping a distressed entity alive while also maximizing the value of the underlying assets to benefit all stakeholders. Several big ‘non-performing assets’ (NPAs) or bad loans of banks have gone through the drill and what would have been an impossible task a decade back, has seen their resolution.

If we look at the data, a total of 6199 cases have commenced by December 31, 2022, of which around two-thirds have been closed. Of these closed cases, the corporate debtor was rescued in 2298 cases, or a little over half of the cases. In these rescued cases, 894 have been closed on appeal or review or settled; 793 have been withdrawn; and 611 cases have ended in approval of resolution plans. On the flip side, 1901 have ended in orders for liquidation.

But, in many cases, the creditors have received a fraction of the sum owed to them.

The process has been less than perfect and that has kept many specialised private equity funds dedicated to stressed assets out of the picture, despite the huge opportunity at play.

In the recent past group resolutions became a hot topic to improve the efficacy of the IBC by clubbing various assets under a corporate group. In January, the Ministry of Company Affairs (MCA) floated a consultation paper on the changes being considered for the IBC and specifically factors in domestic group insolvency. RBI also permitted assets reconstruction companies (ARCs) to act as resolution applicant, subject to certain conditions. Various other measures have been introduced to strengthen transparency and improve the corporate governance standards in ARCs.

That said, IBC is still a relatively new legislation and will need to evolve further to get fine-tuned and make it a win-win proposition for various stakeholders in the ecosystem- the owners, workers and creditors of the stressed asset; ARCs; and specialised stressed asset private equity funds.

To take stock of the seven years of IBC, creation and role of NARCL, non-performing loans (NPAs) in the system and to discuss the way forward, VCCircle is organising the next edition of its Stressed Assets Summit.


8:30 AM onwards
  • 8:30 AM – 9:30 AM


  • 9:30 AM – 9:40 AM

    Welcome Address

  • 9:40 AM – 10:00 AM

    Keynote: Are we seeing effectiveness of IBC fade? How can we tackle the challenges?

  • 10:00 AM – 10:20 AM

    Fireside Chat: Lessons from what worked

  • 10:20 AM – 10:50 AM

    Panel 1: Emerging opportunities in the stock of stressed assets

    When the IBC was set in motion, the big ticket cases with liabilities running into several billions of dollars were under the spotlight. Many of those cases have seen a closure with a new buyer or otherwise. If we look at the current stock of NPAs in the financial system, the opportunity has shifted large corporate cases to retail and SMEs. How are the various stakeholders looking at the emerging cases?

  • 10:50 AM – 11:15 AM

    Networking Break

  • 11:15 AM – 11:35 AM

    Special Address: Valuation of stressed assets within and outside of IBC

  • 11:35 AM – 11:55 AM

    Fireside Chat: Foreign money into Indian distressed market

    International strategic buyers have been active in snapping distressed assets in the country but the same cannot be said about attracting financial investors. Various specialised private equity funds had inked local partnerships to enter the field, but most have been a non-starter. What are the factors holding up PE funds from becoming a string force?

  • 11:55 AM – 12:25 PM

    Fireside Chat: ARCs- Recent regulations and the business model ahead

    The RBI amended the norms related to ARCs last year, in particular dealing with corporate governance, to act as resolution applicant, minimum net owned funds, deployment of surplus funds, transfer of stressed loans, settlement of dues and more. How does the industry look at the new regulatory regime?

  • 12:25 PM – 12:55 PM

    Panel Discussion: NARCL - Bad bank: A step in the right direction?

    National Asset Reconstruction Company Ltd or NARCL was created two years ago to act as a ‘bad bank’ to aggregate and consolidate stressed assets for their subsequent resolution. But NARCL has come under criticism to step into another shoes, of managing the stressed assets, which requires a different skill set. How do market participants NARCL in the whole game and are there certain reins that need to be pulled?

  • 12:55 PM – Onwards

    Closing Remarks

  • 1:00 PM – Onwards


Speakers 2023


Amit Kansal

Chief Investment Officer, Aditya Birla Stressed Asset AMC Pvt Ltd.

Hari Hara Mishra

CEO, Association of Asset Reconstruction Companies in India

Pradeep Goel

MD, Prudent Arc Ltd.

Pallav Mohapatra

MD & CEO, Asset Reconstruction Company (India) Limited

Sanjay Tibrewala

CEO , Phoenix ARC Private Limited

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