Stressed Asset Resolution - Challenges & Opportunities by Care-Cart
Stressed assets are getting increased attention in the banking sector as the trend of deteriorating asset quality has emerged as a big economic risk. Assets of the banking system comprises of loans given and investment (in bonds) made by banks. Quality of the asset indicates how much of the loans taken by the borrowers are repaid in the form of interests and principal. The most important scale of asset quality is Non Performing Assets (NPA). An NPA means interest or principal is not repaid by the borrower during a specified time period. To address the recurring issues of NPAs in the banking sector, stringent laws to take care of defaulters in a time bound manner has been introduced.u00a0 The Insolvency and Bankruptcy code has been set up to bring down the negative perceptions of Loan and Litigations associated with India.
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