determined haircut as part of restructuring. iv. the fiscal dimension 22. the success and credibility of all the resolution efforts detailed above would be critically contingent on the strength of the public sector balance sheets to absorb the costs. it is clear that psbs will need to take haircuts on current exposures under any resolution plan agreed within or outside the ibc. higher provisioning requirements, on this count as well as other factors, will affect the capital position of several banks. this would necessitate a higher recapitalisation of the public sector banks. the government and the reserve bank are in dialogue to prepare a package of measures to enable psbs to shore up requisite capital in a time - bound manner. the measures could include a combination of capital raising from the market ; dilution of government holdings ; additional capital infusion by the government ; mergers based on strategic fit ; sale of non - core assets etc. v. conclusion and way forward 23. the multi - pronged approach outlined above is an on - going process. the early signs are encouraging. however, we all must realise that it will be a long haul before the intended objectives are fully achieved. there could be initial glitches and unanswered questions but these will get resolved as the process advances. the ibc process itself will evolve as case history of various nclt / nclat judgements build up. 24. the contours of the approach to be adopted for other non - performing accounts are being worked through. we must, however, stress that the exercise of powers by the rbi vested in sections 35 aa and 35 ab cannot be a regular, steady state approach. the lenders have been adequately empowered under the ibc to take necessary action upon default. it is now incumbent upon all lenders to effectively leverage these powers through proactive, timely references under ibc on their own. 25. even under ibc, huge responsibility is cast upon the committee of creditors to agree to a viable restructuring plan in each admitted case within the prescribed timelines. the creditors, in particular banks, will need to devote adequate resources and strengthen internal processes to focus on these cases as the number is only going to go up. 26. in conclusion, i must reiterate the intent and resolve on the part of the government and the regulators to collectively address the problem of stressed assets in the system. there are pains and costs to be borne, but as long as the end - game is a desirable goal

strategies and reporting which are more often viewed by investors as being safe and stable for higher growth with a higher valuation in market pricing mechanism by financial markets. 9. corporate sustainability adds the dimension of directionality to speed, converting it to the velocity required for long term success. it could be described as a business approach that creates long term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social scenarios. 10. it is based on two guiding principles : • sustainable business practices are critical to the creation of long - term shareholder value in an increasingly resource - constrained world • sustainability factors represent opportunities and risks that competitive companies must address amul, for instance, is one of the foremost examples of corporate sustainability in modern india. by working towards the welfare of the dairy farmers, bringing about the white revolution and turning india from a milk deficit to a milk surplus country, taking care of the nutrition needs of the country, it has managed to address the needs of several stakeholders and has also addressed the overarching goals of social justice and equity, and economic development. recent trends in corporate sustainability • transparency 11. just like technological change, transparency is an irreversible force. reporting and disclosure will undoubtedly continue to grow, driven by ever - lower barriers to information access, higher public interest and regulatory changes. already over 5, 000 corporations disclose their environmental, social and governance factors ( esg ) performance on an annual basis, and this number is bound to grow. • trust bis central bankers ’ speeches 12. the ever - growing impact of business on society indicates that citizens and consumers expect corporate power to be exerted responsibly. as people grow more skeptical, self - organised and prone to challenging authority, the corporate community will have to enhance efforts on building trust. this means being proactive and thorough in how a company views its responsibilities and impacts on society, and then showing how it manages operations accordingly. 13. i am sure all of you have heard of dr. ela bhatt and sewa. she took the element of trust and transparency in corporate accountability to another dimension when sewa withdrew the entire supply of a snack from the market, even to the extent of trying to track each sold packet, because they had discovered that one of the ingredients had health hazards. • community participation 14. industry is expected to do more in areas that used to be the exclusive domain of the public sector – ranging from health and education, to community investment and environmental stewardship. environmental