Don’t expect rush in bankruptcy filings: IBBI Chairman

3

By Rituraj Baruah
New Delhi, April 15 |
As the suspension on fresh insolvency cases got lifted last month, Insolvency and Bankruptcy Board of India (IBBI) Chairman, M.S. Sahoo feels that although filings for bankruptcy may increase somewhat, but there would not be a huge jump in cases.

Speaking to IANS, Sahoo noted that there are other provisions for debt resolution too, which would lower the pressure on the Insolvency and Bankruptcy Code (IBC).

“I don’t see that there will much rise. It is because people are making more profits then they were making earlier. People have adjusted to the new normal. There are some sectors which have more problems, but generally people are adjusted to the new normal, doing normal business,” he said.

Sahoo was of the view that in India, the leverage level is still not very high and businesses continue to get more funding through the equity route.

“And in India also generally, the profit margin is high. Moreover, there are other options for resolution including using the RBI prudential framework, companies act etc. So I don’t see a huge rush of bankruptcy filings,” he said.

Last year, Sections 7, 9 and 10 of IBC were suspended in the wake of the Covid crisis and the nationwide lockdown, and this further extended till March 24, 2021. There was anticipation that with the resumption of these Sections, the number of bankruptcy filing would surge.

Sahoo was also of the view that the development in the code has been significant and international agencies have appreciated the law and its contribution to the ease of doing business scenario.

Noting people mostly look at how much has been recovered, the IBBI chief said that the law is not primarily for recovery. Even in terms of recovery, it is results in highest recovery among all the options available for banks.

“As compared to liquidation value, the realisation is about 200 per cent and more importantly the ones which come to IBC, they come as last resort, where the banks have mostly written it off.”

He said that it is a wrong notion that lenders are taking a 50-60 or 30 per cent haircut.

“In their books, they had written it off, so they were not expecting any money to come in, so the entire money goes to their profit and loss, does not go to their balance sheet actually,” Sahoo said.

As per latest data from the IBBI, a total of 4,139 cases were admitted as of last December, out of which 2,422 cases have been closed, including 601 settled or reviewed, 378 withdrawn, 317 approved for resolution plans and liquation for 1,126 companies.

(Rituraj Baruah can be contacted at rituraj.b@ians.in)

Source: IANS

Next Story

Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

“Work and you’ll get what you need; work harder and you’ll get what you want”.

The above-mentioned quote speaks volumes about the courage of those who have made substantial breakthroughs in their life with hardwork and dedication.

One such committed individual who is preparing several notable names with their social media reach is Durgesh Dhaker. An agile and someone who keeps himself upbeat with the happenings in the country, Durgesh has acquired expertise in carving the social media strategies for various stalwarts. He is also the founder of Aapno Rajasthan

facebook page with more than 1 million likes which he gain within very short time with his expertise.

Coming from the beautiful city of Chittorgarh in the land of Rajasthan, Durgesh Dhaker is making his parents and fellows pride of his strides and success acquired through hustling with perseverance. His social media expertise enables him to give his top tips for growing one’s social media presence, it is as below-

1-Create a network

Social media comprises of a huge number of people who need to build their reach, subsequently, it turns into a fiercely cutthroat spot where every individual is attempting to draw in mass consideration, thus it is basic that we upgrade our activities to pick a specialty which suits our inclinations, it ought to be something that you are prepared to deal with for quite a while of your life.

Zero in on making an intuitive substance that can be discovered when somebody looks for it, the most ideal approach to do is to is utilize significant hashtags on Facebook, Twitter, etc.

2-Create steady, quality posts that are relatable

Today, the web has enough data however we can help our supporters discover quality data that isn’t excess by posting relatable substance according to our niche, recall, forthright, valuable, and quality substance is as yet restricted on the web, consequently assuming you give individuals what they are searching for reliably, gradually and slowly, you will see considerable development in individuals who follow you.

3-Social media showcasing/connecting websites

Social media marketing is perhaps the most ideal approach to get ideal reach online, to see speedy outcomes, posting cool videos, and opinion on the latest happenings are some methods which can be deployed. If one has a website on their name or related to their field of work then those can be attached on social media profiles to promote them better.

In a nutshell, we can conclude that, according to Durgesh Dhaker, the top way to grow your social media presence is by being relevant and consistent with the content that is suited to the tastes of your target audience, linking several web pages and blogs to boost traffic and last but not the least correct marketing of your content that can lead to conversions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here