New norms will ensure bad loans are recognised faster: Shikha Sharma, Axis Bank

In a chat with ET Now, Shikha Sharma, CMD, Axis Bank, says bankers are excited about the fact that finance minister in his budget speech has mentioned that they want to bring the bankruptcy code this year

ET Now: What is being done for recovery of bad loans?

Shikha Sharma: The issue is fundamentally about due diligence, monetary recognition and resolution and I think we are trying to address all of those elements. RBI has come up with some new norms for recognition which will actually accelerate the process of recognition and we are hoping that all the improvements to SARFAESI and all the improvements once we have the bankruptcy code will help us to resolve faster. Sometimes, the whole process takes several years for us to get resolution and by that time the value of the asset has depleted. So faster resolution is definitely going to help and therefore we are very excited about the fact that finance minister in his budget speech has mentioned that they want to bring the bankruptcy code this year and that they are looking at how to make the whole SARFAESI action more effective so that banks can recover bad loans faster.