Insolvency and Bankruptcy Code (IBC): An Assessment of its Impact on Sustainable Performance of Selected Public Sector Banks in India

Abstract

Purpose: The Indian banking sector has experienced a lot of structural changes as far as its policy related to loan recovery is concerned. The Government of India set up debt recovery tribunals, enacted SARFAESI act and IBC to ensure smooth recovery of loan defaults of the banks. Hence the objective of the paper is to study the financial performance of the selected public sector banks pre and post IBC implementation.

Design/Methodology/Approach: The Research design selected for the study is descriptive. The study is based on secondary data collected from RBI websites, respective bank’s websites, government reports and various research papers.

Limitations/Implications: The limitation of the study is that the researchers have studied the subject of financial performance of banks considering only the selected dimensions. The financial performance of banks depends upon different factors rather than only implementation of a single IBC act of loan resolution and recovery.