The Indian banking sector has seen various changes over the last decade. An increase in nonperforming assets (NPA) was a major reason for worry for the government of India. The increased rate of recovery in India and the high percentage of NPA led to issues between Banks, organizations, and individuals (lenders and borrowers). The introduction of the insolvency code by the government of India in 2016 was aimed to bring down NPA and increase the recovery time.

This paper attempts to study the impact of the IBC on the banks in India over the last 6 years. A comparative analysis was performed between private and public banks. The article is divided into 2 parts, the first studies the Advances and NPA while the latter explains the impact of NPA on the profitability ratios. This study has used secondary data and analyzed 21 public and 21 private banks using correlation and regression.

The results show a significant impact of the introduction of IBC on the recovery rate, profitability, and the NPA. This paper has addressed changes in policies for the improvement of the code.

Introduction
The Indian economy today has emerged as one of the fasted growing economies and is expected to be among the top three economies in the next decade due to its strong democracy and ties with a neighboring nation. The Indian economy is a mixture of all types of economies popularly known as a mixed economy. It is known to be the world's seventh-largest in terms of nominal GDP. As of 2018, Indian ranks 122 in per capita GDP with $7783.

In the post-liberalization era, India managed to achieve annual growth of 6-7% of GDP. The financial system plays a major role in the development of a country's economy as it aids in wealth creation by linking a resident's savings to investments. The financial system of a country enables the movement of funds from households to companies and helps in the growth of both businesses and households.

The structure of the Indian financial system can be divided into an organized financial system and an unorganized financial system. The banks are regulated by the RBI by keeping in check the CRR, SLR, Repo rate, etc. This ensures that the banks function properly and they always have a provision of funds in case of emergency. The RBI regulates the banks and handles any kind of problem that arises.

The increase in the NPA over the decade led the RBI to introduce the insolvency and bankruptcy code and take prompt corrective actions to reduce recovery time. The law was introduced as an effort to merge a large number of laws about insolvency and bankruptcy. This was an important step taken towards the growth and stability of the banking sector in India.

Although similar laws are already in existence in other countries, India's introduction to IBCC put it into the race of growth with the other major countries such as the US, UK, and Germany. This paper aims to bring out the changes the banks have seen over the last 3 years after the introduction of IBC and a pre and post-event analysis.

Motivation of Study
The banking industry of any country plays a key role in the growth and stability of its economy. India being a developing country continues to see changes every day. In the last decade banks in India failed to reduce NPA levels despite the large number of laws introduced for insolvency and bankruptcy separately. After the introduction of the Insolvency and Bankruptcy code in 2016 which combined all these laws as one, there was a relief for both borrowers and lenders due to the promise of reduction of recovery time.

It has been two years since the code was passed and the right time to analyze its effects. Thus, this study derives its motivation from the curiosity of the people to know what kind of impact this law has had on the banking sector of India in the last two years and the need to improve the quality of the code that has been enforced.

Review of Literature
The Indian banks face many challenges and prospects due to factors such as transparency, growth of risks such as NPA, global economy, ethical issues, and customer retention. Goyal and Joshi (2012). It is also suggested that Indian banks need to come up with better and innovative products to compete with the growing technological world. A study that discussed the effect of factors such as NPA and P/E on the Indian banks suggested that NPA in a few banks such as Punjab national bank showed a fall in NPA till 2012.

PSBs didn't show the same results and the then government in 2013 ensured that they reduced the lending rate and cleared stalled projects which in turn led to the rising of NPAs. (Kajar and Trivedi (2014). Different insolvency laws existed in India before the introduction of the Insolvency and bankruptcy code in 2016. There exist 10 different laws in 2015 before all of them were combined and amended to form a single law (Adukia,2015).

An in-depth study of the recent IBC concluded that the code currently encourages liquidation at the price of financial restructuring. It was also suggested that the code doesn't provide enough representation to the stakeholders. (Pandey,2016). NPA was seen to have an impact on the profitability of the banks which can further lead to the reduction of the banking efficiency (Dhara. K,2017).

A study done on the challenges and problems related to the IBC 2016 suggested that the code's idea was to not only reduce NPA but to increase FDI and improve India's rank in the Ease of Doing Business Index (Goel,2017). But the code, however, is over-ambitious trying to combine more than 11 laws regarding bankruptcy and aiming to cause major amendments in a short time, Venkat. P (2016-2017), in his research, pointed out that the IBC was a welcomed change in the bankruptcy process in India since it took more than 4 years to resolve a case before IBC was introduced. He believes that if this code is implemented properly, it would help lenders, borrowers, regulators, and the government. In his paper, Venkat suggests that IBC will significantly increase the transparency in the Indian system. He finally says that the IBC will start showing its effects after a year or two in 2018 when the recovery rate will start decreasing.

Conclusion and Suggestions
This study mainly focused on the impact of the insolvency and bankruptcy code of 2016 on the banking industry of India especially the public and the private sector banks. Its objectives included the effects on the bank's pre and post-era of IBC. It can be concluded that the introduction of IBC initially led to a shock in the industry and caused an opposite impact than what it was aimed for. But the last financial year has seen a change in trend due to the introduction of IBC.

Also due to this, the long-term effects are expected to show the much-awaited results of the reduction of NPA levels in both public and private sector banks and increase in the profitability of the banks. Hence IBC has had a positive impact and will continue to have it on the banking sector of Indian and in turn the Indian Economy. Also, during the study, a few points of the problem were identified.

These are that the rivals can purchase companies for a very small amount and in the absence of healthy competition, it can be a point of depression for the economy. Haircuts are still big, and banks need money to cover these. Also, there is no guarantee that banks will have no build-up for bad loans as there is no mechanism in place to prevent it. A change in the policies to address these issues can make a huge difference and can improve the quality of the code.

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