Banks and financial creditors have taken a 67% haircut in over 1,200 cases of corporate insolvency cases that ended in resolution. The data released by Insolvency and Bankruptcy Board of India (IBBI) indicates a realisation of Rs. 3.96 lakh crore for creditors under resolution plans through June 2025 against admitted claims of Rs 12.15 lakh crore.
The fair value of these assets was estimated at Rs. 3.50 lakh crore, and the liquidation value at Rs. 2.32 lakh crore. This demonstrates that creditors realized 170.84% of the liquidation value, a key indicator of the process’s effectiveness in preserving and enhancing the value of distressed assets.
According to IBBI, about 40% of the CIRPs (497 out of 1229 for which data are available), which…