S&P upgrades India’s insolvency framework to Group B

It matters to citizens as it details the Code's impact on creditor recoveries, corporate revival, and the introduction of new amendments effective May 2026.

Who it concerns: The document concerns the Insolvency and Bankruptcy Board of India (IBBI), financial creditors, corporate debtors, insolvency professionals, and the general public affected by India's insolvency framework.

What the document says

• As of June 2026, 1,484 Corporate Insolvency Resolution Processes (CIRPs) have yielded resolution plans, realizing over Rs. 4.35 lakh crore for creditors.
• The Insolvency and Bankruptcy Code (Amendment) Act, 2026 received President's assent on April 6, 2026, and most provisions came into force on May 26, 2026.
• The Amendment Act introduces reforms including the Creditor-Initiated Insolvency Resolution Process (CIIRP), asset-wise resolution, and strengthened provisions for avoidance transactions.
• The IBBI notified amendments to the Model Bye-Laws for Insolvency Professional Agencies (IPAs) on May 13, 2026, allowing IBBI to nominate a director to the IPA Governing Board.
• The Central Government amended the Companies (Registered Valuers and Valuation) Rules, 2017, requiring a minimum paid-up share capital of Rs. 25 lakh for Registered Valuer Organisations (RVOs), with compliance required by March 31, 2028.

Also in the document

• S&P Global Ratings upgraded India’s insolvency framework from ‘Group C’ to ‘Group B’.
• The Reserve Bank of India reported that the gross Non-Performing Asset ratio decreased from nearly 11.8% in 2017 to 1.8% as of March 2026.
• An IIM Ahmedabad study (2025) noted that the aggregate market valuation of resolved listed entities rose from nearly Rs. 2.8 lakh crore to about Rs. 9 lakh crore over five years.
• More than 30,000 cases filed before the National Company Law Tribunal were resolved at the pre-admission stage through withdrawals, involving amounts estimated at nearly Rs. 14 lakh crore.