Say no to banks

Suspending IBC for an extended period would destroy it

Indian banks are reportedly planning to suggest to the government that all the pending cases under the Insolvency and Bankruptcy Code (IBC) should be suspended for at least two years in the context of the Covid-19 pandemic. This comes just days after the Union government decided to suspend the IBC provisions for six months, or till the time the government may deem fit. The banks feel that, given the pandemic’s effect on business sentiment, it will not recover for some time, affecting the prices they will get for the distressed assets. Already, it appears, expressions of interest from possible bidders