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Ordinance amending IBC makes it difficult for promoters to bid: SBI

In an interview to CNBC-TV18, Rajnish Kumar, Chairman of State Bank of India shared his views and readings on the bankruptcy code change.

November 24, 2017 / 10:18 AM IST

In an interview to CNBC-TV18, Rajnish Kumar, Chairman of State Bank of India shared his views and readings on the bankruptcy code change.

Kumar said that the promoters can bid provided they make accounts standard by paying over dues.

According to him ordinance amending Insolvency and Bankruptcy Code (IBC) makes it difficult for the promoters to bid.

He further said that enterprise will get fair value depending on quality of physical assets.

Talking about delays in resolution process, he said if the promoters challenge the law, there may be a delay.

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On Moody's rating front, he said Moody’s upgrade will lead to lower cost of borrowing.

He believes non-performing asset (NPA) will fetch a fair price even without promoters.

Watch accompanying video for more details.
CNBC-TV18
first published: Nov 24, 2017 10:18 am
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