20% realization rate for 2025-26 under IBC, lower than 94.6% fair value average

The question asked the Ministry of Corporate Affairs to state whether the Insolvency and Bankruptcy Code (IBC), 2016, has transformed the corporate insolvency framework, improved credit discipline, and enabled faster resolution and higher recovery of dues for Scheduled Commercial Banks. The government responded by providing details on the consolidation of laws, recovery statistics, and year-wise data on cases resolved by financial creditors.

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

• IBC consolidated fragmented laws including the Sick Industrial Companies (Special Provisions) Act, 1985, and the Recovery of Debt Due to Banks and Financial Institutions Act, 1993.
• 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 of 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 prompted borrowers to adhere to loan payment schedules and reduced 'Overdue' loan accounts.
• IIM Ahmedabad report (August 2023) found significant improvements in profitability, liquidity, and financial health of resolved firms.
• Year-wise data for 2017-18 to 2025-26 shows total cases resolved by Financial Creditors ranging from 18 to 259 per year, with realization percentages varying between 20% and 55%.

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