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ARTICLE · 06 JUNE 2020

Analysis Of Covid-19 On Prudential Framework For Resolution Of Stressed Assets

Luthra and Luthra Law Offices India
Luthra and Luthra Law Offices India
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The emergence of COVID-19 has impacted our country in many ways, one of such incidents is resolution of stressed assets.

IndiaFinance and Banking
Abir Lal Dey
Abir Lal Dey
Sourav Padhi
Sourav Padhi
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Introduction:

The emergence of COVID-19 has impacted our country in many ways, one of such incidents is resolution of stressed assets. In this article we will do a deep dive to understand the impact, measures and possible mitigation on stressed assets resolution during and post pandemic.

What is Stressed Assets?

Stressed assets are powerful index of the health of the banking system. Stressed assets are typically the combination of the non-performing assets, restructured loans and written off assets. Stressed Assets generally face the issue of decrease in value due to market volatility and increase in default rates. The ongoing pandemic has resulted into large scale market instability and this may result in many Stressed Assets.

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