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Corporate Debt Restructuring Mechanism: The Need to Balance Between Carrot and Stick

Year 2011
Volume/Issue/Review Month Vol. - IV | Spl. Issue 2 | Jan
Title Corporate Debt Restructuring Mechanism: The Need to Balance Between Carrot and Stick
Authors Dr. G.K.Sharma , S.K.Panda
Broad area Corporate Debt Restructuring Mechanism: The Need to Balance Between Carrot and Stick
Abstract
The first part of this paper focuses attention primarily on the concept –
what it is, how it has evolved and functioning now, its macro-economic
importance. The paper then critically evaluates the mechanism drawing
from the experience of the authors and the literature available in the
web. We have included the role of bankers in identifying, implementing
and monitoring the CDR cases. As statistics and discussions papers
indicate, much needs to be done on the CDR front in developing
countries particularly in India in order that all stakeholders derive benefit.
The paper also discusses a small case study for the benefit of the readers
Description Credit Risk is said to be as old as the mountains; bankers and financial institutions know it well. Money lent needs to be recovered and lenders follow a number of measures for recovery. These have been now fairly structured and IT-enabled. One of them is
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Referenceses
Subramanyam, Pratap, ‘Investment Banking: an Odyssey in High Finance’, TMH,
www.rbi.org.in
www.cdrindia.org
‘Competing for the future’, Hamel, Gary and Prahalad, C. K. – Chapter on ‘Strategy Gap’.
RBI Circulars on Prudential norms and CDR including DBOD. No.BP.BC.68/21.04.132/2002-
03 of February 5, 2003. and RBI/ 2008-09/143 of August, 27, 2008