New Delhi, April 27 -- India's banking system needs urgent reforms to address delays in loan recovery, simplify legal frameworks, and improve overall efficiency, according to the Confederation of Indian Industry's (CII) 'Report on Banking and Financial Services Sector Reform'.

The report flags slow resolution of bad loans and procedural bottlenecks as key challenges, calling for stricter timelines and stronger institutional capacity to support the sector.

Highlighting the effect of delays, the report said, "prolonged proceedings lead to the asset devaluation, creditor losses and overall inefficiency in resolving the cases."

It noted that despite laws aimed at faster recovery, implementation remains weak. The report added that "there ar...