Don't undermine the IBC

Deadlines should not be extended arbitrarily

Many lenders and several companies, which figure in the Reserve Bank of India’s (RBI) second list for the resolution of non-performing assets (NPAs) are reportedly lobbying with the central bank for more time even as the deadline of December 13 nears. If debt resolution is not finalised by then, the 28 firms in the list will end up in the National Company Law Tribunal (NCLT) for the next step in the insolvency process. At that point, banks will have to provide for losses up to 50 per cent of the loan value, hitting their earnings. This, in turn, will adversely