NPA resolution: One size doesn't fit all

A sector-wise approach and an enabling legal and regulatory framework are needed to make the most of the NCLT mechanism

The sizeable and growing problem of non-performing assets in the banking books is a national concern. Policy makers, banking regulators and the banking system have been making concentrated efforts to resolve the NPA issue. Their efforts have begun to show first signs of results. It is debatable whether demonetisation pushed back the resolution by four to five quarters as the banking system was seriously engaged with changing notes after November 2016 for two quarters and then the GST reform happened.
 
Be that as it may, the most commendable reform on insolvency and bankruptcy law will ensure a long- term