Ashok Kakkar Kakkar Wisdom Hub

08/06/2026

“Strategic Recovery Pathways: How Banks Evaluate SARFAESI vs IBC in Stressed Asset Cases” – Published on IBC Laws.

Source: IBC Laws

06/06/2026

Can Strong Collateral Alone Guarantee Loan Approval?

One of the most common misconceptions among borrowers is that offering valuable collateral automatically ensures loan approval.

In reality, banks generally lend against the borrower’s ability and willingness to repay, not merely against the value of the security offered.

Collateral certainly plays an important role in mitigating risk, but it is often considered a secondary source of repayment. The primary focus of a lender is usually the borrower’s repayment capacity, cash flow generation, credit history, financial discipline, business viability, and overall risk profile.

This explains why a borrower may sometimes be denied a loan despite offering substantial security. From a banking perspective, a strong asset cannot compensate for inadequate repayment capacity or an unsatisfactory credit assessment.

A fundamental principle of sound lending is:

“Loans are expected to be repaid from cash flows, not from the sale of collateral.”

Collateral provides comfort, but sustainable repayment comes from income, business performance, and financial discipline.

Understanding this distinction helps borrowers better appreciate how lending decisions are made and why credit appraisal extends far beyond the value of security offered.

What are your views? Should collateral carry greater weight in lending decisions, or should repayment capacity remain the primary consideration?

Disclaimer: This post is intended solely for educational and knowledge-sharing purposes. Lending decisions depend upon applicable laws, regulatory guidelines, institutional credit policies, risk assessment practices, and the specific facts and circumstances of each case.

05/06/2026

Are we keeping too many financial eggs in one digital basket?

Just a thought for discussion: As cyber frauds increasingly involve unauthorized access to mobile phones rather than mere OTP theft, would it be prudent to use a separate low-balance account for UPI transactions and avoid linking all savings accounts, FDs, and banking facilities to a single mobile banking app?

I would be interested in hearing the views of bankers, cyber-security professionals, regulators, and customers.

04/06/2026

From Debt Recovery to Business Resolution: Understanding the Impact of IBC on India’s Recovery Framework

From Debt Recovery to Business Resolution: Understanding the Impact of IBC on India's Recovery Framework Introduction The banking system plays a vital role in the growth of any economy by providing financial support to businesses and individuals. However, not all loans are repaid on time. When borrowers fail to service their debts and loan accounts become Non-Performing Assets (NPAs), banks and financial institutions must take steps to recover their dues....

From Debt Recovery to Business Resolution: Understanding the Impact of IBC on India’s Recovery Framework Introduction The banking system plays a vital role in the growth of any economy by pro…

04/06/2026

https://youtu.be/Y6fxgZKlQZ8?si=BX76G6TOStuabplw

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

02/06/2026

Security Interest under the IBC: Understanding the Clarification Introduced by the IBC (Amendment) Act, 2026

Security Interest under the IBC: Understanding the Clarification Introduced by the IBC (Amendment) Act, 2026 Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to establish a comprehensive and time-bound framework for insolvency resolution and liquidation in India. One of its key objectives is to maximize the value of assets while balancing the interests of creditors, investors, employees, and other stakeholders....

Security Interest under the IBC: Understanding the Clarification Introduced by the IBC (Amendment) Act, 2026 Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to establish a c…

02/06/2026

Security Interest under the IBC: Understanding the Clarification Introduced by the IBC (Amendment) Act, 2026

Security Interest under the IBC: Understanding the Clarification Introduced by the IBC (Amendment) Act, 2026 Your Attractive Heading Introduction The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to establish a comprehensive and time-bound framework for insolvency resolution and liquidation in India. One of its key objectives is to maximize the value of assets while balancing the interests of creditors, investors, employees, and other stakeholders....

01/06/2026

Understanding NPA and Asset Classification in Banking

Understanding NPA and Asset Classification in Banking A Simple Guide for Borrowers, Bankers, Students, and General Readers Introduction Most people who have taken a loan from a bank or financial institution have heard the term "NPA" or Non-Performing Asset. The term frequently appears in banking news, financial discussions, and RBI publications. However, many borrowers and members of the public are not fully aware of what an NPA actually means, how a loan becomes an NPA, and why banks closely monitor overdue accounts....

Understanding NPA and Asset Classification in Banking A Simple Guide for Borrowers, Bankers, Students, and General Readers Introduction Most people who have taken a loan from a bank or financial in…

01/06/2026

Understanding NPA and Asset Classification in Banking

Understanding NPA and Asset Classification in Banking A Simple Guide for Borrowers, Bankers, Students, and General Readers Introduction Most people who have taken a loan from a bank or financial institution have heard the term "NPA" or Non-Performing Asset. The term frequently appears in banking news, financial discussions, and RBI publications. However, many borrowers and members of the public are not fully aware of what an NPA actually means, how a loan becomes an NPA, and why banks closely monitor overdue accounts....

30/05/2026

Revival of Limitation in Bank Loans

Revival of Limitation in Bank Loans Understanding Balance Confirmation and Revival Letters in Banking Practice Introduction In banking and financial transactions, recovery of dues through legal proceedings is closely connected with the law of limitation. Even where valid loan documents and securities are available, banks must ensure that recovery action is initiated within the legally prescribed time period. Failure to maintain continuity of limitation may adversely affect the enforceability of recovery proceedings....