Recoveries of admitted claims under India’s Insolvency and Bankruptcy Code (IBC) nearly halved in the financial year 2025-26, falling to 23% from 46% the previous year, amid escalating delays, as outlined in a report released on Thursday by rating agency Icra.
The report highlighted a 5% decrease in the number of cases entering the corporate insolvency resolution process, with 679 cases in FY26 compared to 724 in the year before. A concerning trend was identified with recovery rates dropping to 22% in the latter half of FY26 from 63% in the corresponding period of FY25.
The IBC marked its 10th anniversary in May 2026, yet long resolution times, substantial lender haircuts, and numerous liquidation cases remain persistent issues….