Ever wondered how much money has been recovered through IBC? Here's the data
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
