Discussing the reasons for high Non Performing Assets (NPAs) in Indian banking sector, critically examine the role of Insolvency and Bankruptcy Code (IBC) and National Asset Reconstruction Company Ltd (NARCL) for reducing financial stress on banks.

NPA burden has been rising in India after pandemic & economic slowdown. However, IBC and NARCL has helped a little. Reasons: Corporate liquidation = 70% of NPA (NTPC in NBTC = 11%, NPA in private banks has been lower public) High Cost of Borrowing in India: - Long delays - High laxity

Utility of IBC & NARCL: Critical Analysis: TBC = launched in 2015 to quickly reduce NPA burden by fast-tracking their Resolution. NPA burden by fasttracking their Resolution. NARCL = launched in 2022 (is to dispose of huge corporate ResolutionNPA's (to dispose of huge corporate resolution NPAs). Their disadvantages include: 1. Drop in NPA-ratio (is due reduced deadline the NPA ratio) 2. Slowdown in Govt Bank - is due to quicker disposition. 3. Breakup Bank capital - is used for recapitalization to manage prefixable of FDI. 4. NARCL - permitted to dispose huge corporate NPAs.