Indian banks continue to grapple with the mammoth challenge of bad loans worth $150 billion. The National Company Law Tribunal has admitted about 730 bankruptcy cases in the past two years since the Insolvency and Bankruptcy Code was notified. To be sure, IBC has been instrumental in closure of cases involving 382 companies and recovering close to $45 billion. The fact, however, remains that less than 50 of these found buyers and that, too, at a massive discount. At the same time, high-profile cases of bankruptcy have seen intense litigation between owners or majority shareholders of companies and the prospective buyers and investors.
Offers, counter-offers, differences, litigations, missed deadlines have kept the process of NPA resolution on a slow track.
The challenges notwithstanding, non-performing or stressed assets continue to be an attractive opportunity for investors and that is evident from the buzz at the end of Indian as well as global private equity funds and strategic investors. These investors have struck alliances, floated new vehicles and launched funds to participate in the spring cleaning happening at the Indian banks.
News Corp VCCircle organized its debut Stressed Assets Summit on July 25 earlier this year. We now present the second edition of the Summit to assess the progress in the past six months, the lessons learnt and to look at the road ahead.