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India banks turn sluggish as loan recoveries drag and tangled laws block lenders CII warns
Economy
Published on 27 April 2026
Legal delays are slowing recoveries more than defaults
A Confederation of Indian Industry report says India’s banking system is losing speed as loan recoveries stall and legal processes grow complex. It calls for tighter timelines, stronger institutions and streamlined rules, including simplifying laws under a unified code. The goal: improve efficiency, restore financial discipline and raise investor confidence by making recovery faster and more predictable.
- Loan recoveries are taking longer, hurting bank efficiency
- Complex laws and legal hurdles delay resolution processes
- Report urges stricter timelines and stronger enforcing institutions
- Simplifying regulations under a unified code is proposed
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times