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    At 24%, bad loan recoveries under IBC fare poorly

    AdminBy No Comments2 Mins Read

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    The average realisation through liquidation has been a mere 3% of the claim amount.

    Synopsis

    Out of the total 4,300 cases that have been admitted to bankruptcy courts since FY17, only 8% has been resolved and nearly 40% of the cases are still pending. About 30% of the cases have seen liquidation.

    Bad loan resolution from bankruptcy cases continued to disappoint with recovery rate at 24% as extended timelines took a toll on recovery and rehabilitation of companies. Recoveries from earlier resolution mechanisms resulted in a loss of nearly 70%.

    Since inception of the IBC, only 8% companies have seen resolution while 30% have gone into liquidation.

    “While the latest trends and progress banking report from RBI points outs a recovery rate

    BY

    ET Bureau

    4 mins read, Last Updated:

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