Union Cabinet Agrees Ibc Amendments Regains The Confidence Of Bidders

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According to Dinesh Kumar Khara, managing director of Global Banking and Subsidiaries, State Bank of India. Expressed his views on the union cabinet agrees with the amendments to the Insolvency and Bankruptcy Code (IBC). That brings back the belief of bidders who are bidding for insolvent firms.

Q: Separately the cabinet also approved some changes to the IBC which ensures the new promoters of the defaulting company have not charged with the losses or the frauds by the old promoters?

Yes, of course, I think both the amendments which have been cleared by the cabinet yesterday are very welcome for the banking industry and also for the economy. Besides, it also regained the confidence of bidders who are going for insolvency cases. But the doubt remains in their minds about the wrong actions of the previous promoters. Through this decision that uncertainty has been removed.

Q: Do you now expect more bids for DHFL (Dewan Housing Finance Ltd)? I mean there are also some inquiries against the promoters but with this sword of in any case what is the interest on DHFL?

For this Karan said ...
... absolutely this will encourage many more to come in. Particularly coming to DHFL the distribution network which was there is definitely of some interest to many.

Q: What’s the advantage of a partial credit guarantee scheme getting less difficult by the companies may be SME zero that will not count against them and then the loans can rate to plus instead of AA. Are you expecting a large pool to become eligible?

He added ”We get some kind of activity but much of it will wait and we see what kind of attraction. This is a good step.” With the assurance of government, public sector banks can buy high rated assets from NBFCs or HFCs.
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