Banking & Finance - Insights from General Counsels & Legal Experts, Understanding the Regulatory Landscape, Sector Specific Insolvency Framework & Cross Border Asset Recovery
14th Annual Legal Era India Conclave 2025 | Panel On Banking & Finance - Insights from General Counsels & Legal Experts, Understanding the Regulatory Landscape, Sector Specific Insolvency Framework & Cross Border Asset Recovery
The speaker provides a comprehensive overview of the current trends and evolving dynamics within the Indian banking and finance sector, focusing on credit growth patterns, sectoral lending shifts, funding sources, regulatory changes, and the growing role of technology, particularly artificial intelligence (AI). The discussion highlights the sector’s challenges—such as non-performing assets (NPAs), pandemic repercussions, and geopolitical pressures—while underscoring emerging opportunities through diversified credit markets, innovative lending models, and reforms in insolvency resolution. The outlook for 2025 points to a more balanced and nuanced credit landscape driven by retail and wholesale segments, increasing participation of NBFCs and private credit funds, and evolving legal frameworks to address insolvency complexities.
Key Highlights:
- Challenges Faced: Legacy NPAs, COVID-19 disruptions, and geopolitical tensions have impacted sector performance.
- Credit Growth Patterns: Retail credit now constitutes nearly half of total credit, while wholesale credit remains vital in infrastructure, real estate, and healthcare sectors.
- Role of NBFCs: Evolving beyond retail lending, leveraging diverse funding sources such as domestic banks, debt capital markets, and international borrowings.
- Geopolitical Mitigation: Government efforts to diversify export destinations support credit market optimism.
- Structured Financing: Expected to regain importance for large-ticket acquisitions and infrastructure projects amid competition from private credit providers.
- AI & Machine Learning Impact: Revolutionizing credit appraisal, loan sanctioning, and collection processes, enabling rapid, data-driven decisions and operational efficiencies.
- Insolvency and Bankruptcy Code (IBC): Improved distressed asset resolution, with calls for sector-specific insolvency regimes and expedited judicial processes.
- IBC Amendments: Aiming to align Indian law with global standards, enhance cross-border enforcement, and address recovery from personal guarantors.
- AI in Insolvency: Supports document analysis and creditor committees, though human oversight remains critical.
Featured Panelists:
- Babu Rao, General Counsel, Bajaj Finance Limited
- Garima Nahar, General Counsel, Jio Blackrock Asset Management Company
- Santosh Parab, General Counsel, L&T Finance Limited
Moderator:
- Kumar Saurabh Singh, Partner, Khaitan & Co
Session Partner: Khaitan & Co
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