The Insolvency and Bankruptcy Code (IBC) has led to the successful resolution of 1,194 companies, enabling creditors to recover a total of ₹3.89 lakh crore, Minister of State for Corporate Affairs Harsh Malhotra informed the Lok Sabha on Monday.
According to the Ministry of Corporate Affairs, the recovery amount is over 170% of the liquidation value and more than 93% of the fair value of these companies, as assessed at the time they entered the IBC process.
The Code has played a crucial role in reshaping India’s insolvency framework. By offering a clear and time-bound process, it has boosted creditor confidence and attracted both domestic and foreign investments. It supports ease of doing business by enabling faster, structured resolution, maximising asset value, promoting entrepreneurship, improving credit availability, and balancing stakeholder interests.
The Ministry of Corporate Affairs, IBC has strengthened India’s banking sector. The RBI’s June 2025 Financial Stability Report notes that Gross Non-Performing Assets (GNPA) have declined to a multi-decade low of 2.3% at the end of March 2025, signalling greater stability. The RBI’s 2023–24 Trends & Progress of Banking report highlights that Scheduled Commercial Banks (SCBs) recovered ₹96,325 crore across various channels, of which ₹46,340 crore (almost 48.1%) came through IBC.
To strengthen the insolvency architecture and reduce delays, the government has enacted six legislative amendments and introduced over 100 regulatory changes to enhance procedural efficiency.
IBC’s presence has changed the behaviour of businesses. With the real possibility of losing ownership, defaulting companies now engage more responsibly with creditors, shifting dynamics positively.
Information was shared by Minister of State for Corporate Affairs and Roads & Highways, Harsh Malhotra. Capacity building is also underway. In FY 2024–25, the Insolvency and Bankruptcy Board of India (IBBI) conducted numerous workshops, webinars, and conclaves to enhance the skills of Insolvency Professionals (IPs). It partnered with expert bodies, including the World Bank, IICA, and IFC, on training and research. International conferences at IIM Ahmedabad, IIM Bangalore, and ISB Hyderabad provided IPs with valuable exposure to global best practices.