Lenders Reclaim 3.5 Lakh Crore Through Insolvency Process: IBBI Chief

Lenders have recovered Rs 3.5 lakh crore via the insolvency process over the past eight years, with NCLT having approved 1,000 resolution plans. The IBC provides a market-linked, time-bound resolution of stressed assets, and recent data shows significant recovery and clearances in the last two years.

In a significant achievement under the insolvency process, lenders have recovered Rs 3.5 lakh crore over the past eight years, according to IBBI Chairperson Ravi Mital.

During this period, the National Company Law Tribunal (NCLT) has approved 1,000 resolution plans, with 450 of these cleared in the last two years alone. Mital highlighted these figures at the eighth foundation day of the Insolvency and Bankruptcy Board of India (IBBI).

Chief Economic Advisor V Anantha Nageswaran emphasized the importance of continuously improving the bankruptcy system for economic growth, noting the 84 percent recovery rate of the assets' fair value under the Insolvency and Bankruptcy Code (IBC).

(With inputs from agencies.)