Government tells Parliament IBC recovered ₹4.32 lakh crore for creditors

The question asked the Ministry of Corporate Affairs to detail the structural changes, comparative performance, and impact on credit discipline and recovery rates brought about by the Insolvency and Bankruptcy Code, 2016, compared to the pre-IBC period.

Asked and answered by: Asked by Shri Yaduveer Wadiyar and Shri Mukeshkumar Chandrakaant Dalal; Answered by the Ministry of Corporate Affairs (via the Minister of Finance and Corporate Affairs).

What the government said

• The IBC consolidated fragmented laws (SICA 1985, RDDBFI 1993, SARFAESI 2002, Companies Act 2013) into a single time-bound framework.
• As of March 31, 2026, 1,419 companies have been resolved under the IBC.
• Total recovery to creditors is ₹4.32 lakh crore, representing 94.6% of fair value and 166.9% of liquidation value.
• Gross Non-Performing Assets (GNPA) ratio for Scheduled Commercial Banks declined from 11.2% in March 2018 to 1.8% in March 2026, per RBI's Financial Stability Report.
• IIM Bangalore study indicates IBC has improved borrower adherence to loan schedules and reduced overdue accounts.
• IIM Ahmedabad report notes significant improvements in profitability and liquidity of firms post-resolution.
• Year-wise data for 2017-18 to 2025-26 shows resolution cases ranging from 18 to 259, with realization percentages varying between 20% and 55%.

Also in the document

• The government stated that separate data for Scheduled Commercial Banks is not maintained centrally, providing only aggregate data for all Financial Creditors.
• The realization percentage in the most recent year (2025-26) is listed as 20%, which is lower than the cumulative average of 94.6% of fair value mentioned earlier in the answer.