News reports in recent months have highlighted the rapid growth in non-performing assets and restructured loans in the Indian banking system. The Reserve Bank of India has underlined the rising incidence of stressed assets as a serious issue and has taken policy measures to address it.
This renewed focus can be seen as an opportunity to revisit the fundamentals of the system, and to usher in new ideas that would strengthen the foundation of India’s financial systems and the economy as a whole.
As a global thought leader in the turnaround and restructuring of stressed assets, Alvarez & Marsal has always been at the forefront in assisting stressed borrowers, creditors and policy makers. We felt the need for a comprehensive study, which would address the entire ecosystem of stressed assets, including lenders, investors, promoters and industry professionals. It was with this intent that the current study has been undertaken. This report aims to outline the current status of the stressed asset market in India and present our outlook for the near future. It also brings to the forefront, the perspectives of different stakeholders operating in this field and identifies key challenges faced by them.
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