Comeback on cards for distressed asset market

Almost a decade into the bank clean-up exercise and seven years since India's bankruptcy law came into being, the current financial year looks to be the one when business insolvencies could return to the market. Seen against the progressive decline in non-performing assets (NPAs), which are at multi-year lows, the sharp rise in insolvencies offers a complex trend—but also an opportunity for India's nascent distressed assets market. Currently, the systemic banking crisis in the US, the global downturn, and tighter monetary conditions are all weighing on the global banking system. Such downturns generally threaten credit growth and hence, can lead…