The legislative push comes as official data and independent analysis reveal a critical gap between the Insolvency and Bankruptcy Code’s (IBC) intended efficiency and its on-ground performance. While the framework has successfully driven down gross non-performing assets (NPAs) for scheduled commercial banks to a multi-year low of 2.05% as of September 2025, the process itself remains critically slow, directly impacting the value creditors ultimately recover.
The Recovery Paradox
Since its inception in 2016, the IBC has been instrumental in changing debtor behavior, evidenced by the pre-admission settlement of over 30,300 applications involving defaults of ₹13.78 lakh crore. This deterrent effect, coupled with…