Letters: Tackling defaulters

Credit expansion and growth of private investment should not be hampered

Although the recent amendments to the Insolvency and Bankruptcy Code (IBC) to prevent errant and defaulter promoters from bidding to reacquire their own enterprise’s assets is intended to speed up the resolution of bad assets, it is not without demerits. Instances of loans or credit facilities turning bad due to reasons beyond the control of the borrowers are not uncommon. The lack of professionalism of lenders, particularly public sector banks, and systemic weakness when it comes to judge and ascertain the various viability and feasibility aspects of the project, and accommodating external influence while granting credit facilities are factors from