The Insolvency and Bankruptcy Code (IBC) has triggered a paradigm shift in India’s corporate debt landscape, fostering fiscal discipline while enabling strategic adjustments for distressed firms, according to a recent study by the Insolvency and Bankruptcy Board of India (IBBI). The study shows that after implementation of IBC, there has been a broad-based reduction in leverage and an improved corporate governance. Analyzing data from the National E-Governance Services Limited (NeSL), the report highlights systemic behavioral changes among corporates and lenders since the IBC’s implementation in 2016.
Key Findings
- Broad-Based deleveraging: Post-IBC, firms reduced overall leverage by 4%, with long-term and secured…
