Bankruptcy Code can help to release Rs 25,000 crore NPAs in 4-5 years: Assocham-Crisil study

22 Nov 2016 Evaluate

A joint study carried out by the Associated Chambers of Commerce & Industry of India (Assocham) and rating agency, Crisil, has stated that the successful implementation of Insolvency and Bankruptcy Code can potentially release about Rs 25,000 crore capital over next 4-5 years currently locked in bad loans. The study highlighted that the code if implemented successfully will help India’s banking sector to catch up with or even exceeds the recovery rates of 32% and average time taken of 2.8 years in other emerging markets. It said that the released capital can be deployed for other productive lending, which in turn could help in credit expansion.

The Assocham-Crisil study titled ‘Insolvency and Bankruptcy Code 2016: A game changer’ noted that the Reserve Bank of India (RBI) has already tightened norms for wilful defaulters, which, together with implementation of the code, will enhance recoveries from such borrowers and improve overall credit discipline as this code will also contain slippages into NPAs by spawning better credit discipline. Though it added considering that institutionalising the code will be a long-drawn affair, it may not provide any material capital relief to banks over short term.

The study also said that this legislation could improve recovery rate of asset reconstruction companies (ARCs) which has been low at an average of 36%, with resolution taking about five years, more so as timely recovery remains key to long-term sustainability of ARCs. It added that the new code along with 100% foreign direct investment (FDI) in ARCs through the automation route is expected to boost capital flows. The joint study highlighted that with the implementation of the code, India’s position in World Bank’s ease of doing business ranking will improve, attracting more foreign investors.

The insolvency and Bankruptcy Code, 2016, seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner. Over a period of time, the code will help promote entrepreneurship and increase the role of professionals from various fields such as law, accountancy and finance.

Create stable, long-term investment portfolio with strong, consistent stocks.

Start Research-backed Investing ...Now. Subscribe to Sapphire

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.