Focus on bank governance: Pain points & what's on offer in Budget

Pain points
 

> A move to the stricter expected credit loss model in accounting for bad loans is on the cards for banks. This is not expected to affect large private players. But many smaller ones may have to make additional provisions.

> The economic survey pointed out that new bankruptcy law in the form of the Insolvency and Bankruptcy Code changed the debtor-creditor relationship. This helped in disposing of over Rs 7 trillion of corporate defaults. But recovery rates are coming down, of late.

What’s on offer

> It is proposed to allow carry forward of accumulated losses and unabsorbed depreciation allowance