Insolvency regulator IBBI and Indian Banks Association (IBA) have signed a Memorandum of Understanding (MoU) to collaborate on capacity building for financial creditors on topics related to insolvency, bankruptcy and related subjects.

The MOU was signed in the capital by Amit Pradhan, Executive Director, IBBI and Sunil Mehta Chief Executive, IBA in the presence of Ravi Mital, Chairperson, IBBI, Mukulita Vijayawargiya , IBBI Whole Time Member, Sudhaker Shukla, IBBI Whole Time Member and J Swaminathan, Managing Director at State Bank of India, among other senior officials.

Speaking on the occasion, Ravi Mital, Chairperson, emphasised that timely resolution of insolvency cases potentially impedes the value erosion of the assets of the corporate debtor and therefore, it is in the interest of all the stakeholders including Committee of Creditors (CoC) and Resolution Professionals / Interim Resolution Professionals (IRPs) to conclude the process well within the stipulated timeline. 

He dwelt upon several issues relating to procedural delays at various stages of the corporate insolvency resolution process and highlighted the need to give a fresh look to the various formats to make them comprehensive enough to facilitate quick decision making at every stage. 

To improve the processes under the Insolvency and Bankruptcy Code (IBC), Mital urged bankers to share their suggestions and feedback regarding the IBC ecosystem with the IBBI.

Sunil Mehta, Chief Executive, IBA highlighted the significant behavioural outcomes and improvement in credit discipline in the economy in the regime post enactment of Insolvency and Bankruptcy Code (IBC).

J Swaminathan, Managing Director, SBI highlighted the importance of capacity building of bankers who, being major financial creditors, drive the commercial wisdom of the CoCs. He also discussed various facets of the role of CoC, as an institution of public faith, including the proposed Code of Conduct for the CoC. 

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