Rating agency ICRA today said there has been a sharp decline in the recovery under the Insolvency and Bankruptcy Code in 2025-26. The agency said recovery dropped by half to 23%, while haircuts have witnessed a sharp rise.
“The number of resolution plans (RPs) approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) dipped to 225 cases in 2025-26 from 259 cases approved in 2024-25. Further, realisations reduced significantly in 2025-26 with recoveries against admitted claims halving to 23% from 46% in 2024-25. This was led by the significant drop in recoveries to 22% in H2, 2025-26 from 63% in H2, 2024-25, which is a cause for concern,” ICRA said in a note today.
At the same time, the number…