The fresh norms are a diluted version of their predecessor, with lenders being given an option to invoke bankruptcy law against delinquent borrowers. While this is a welcome development, we believe RBI must follow through with tighter monitoring. As a trade off, lenders will be required to make additional provisions, if the resolution plan fails. However, with provisions by corporate heavy banks spiking over the trailing year (and sufficient coverage), the incremental impact of the circular is unlikely to be material. Maintain BUY on corporate-heavy banks like AXSB, ICICIBC amongst PVT Banks and SBIN in the PSB pack. The 12-Feb-189 RBI circular provided a significant impetus to NPA resolutions, compelling banks to take borrowers to NCLT/IBC where a Resolution Plan (RP) was not implemented within 180 days of default. However, the circular was declared ultra vires by the SC in April-19. The RBI put out a fresh circular on the matter.