The Insolvency and Bankruptcy Code (IBC) has emerged as a game-changer in India’s insolvency framework, enabling faster resolution of distressed companies and boosting creditor confidence. Since its inception, the IBC has provided a transparent, time-bound mechanism for revival, thereby enhancing the ease of doing business, maximising asset value, and supporting entrepreneurship and credit availability.

As of March 31, 2025, a total of 1,194 companies have been successfully resolved, helping creditors realise ?3.89 lakh crore — over 170% of the liquidation value and more than 93% of the fair value of these companies at the time of admission.

The IBC has also strengthened India’s banking sector. According to the RBI’s Financial Stability Report (June 2025), Gross NPAs fell to a multi-decade low of 2.3% at the end of March 2025. The RBI’s Report on Trends and Progress of Banking in India (2023–24) noted that Scheduled Commercial Banks recovered ?96,325 crore through various channels, with the IBC contributing ?46,340 crore (48.1%) of the total recoveries.

To further streamline processes, the government has undertaken six legislative amendments to the IBC and introduced over 100 regulatory changes since its launch, improving procedural efficiency and minimising delays.

The Code has also triggered a behavioural shift among companies and debtors, reinforcing accountability by creating a credible threat of loss of ownership in case of defaults.

Additionally, significant efforts have been made to build the capacity of insolvency professionals (IPs). In FY 2024–25, the Insolvency and Bankruptcy Board of India (IBBI) organised workshops, webinars, and conclaves, while collaborating with global institutions such as the World Bank, IICA, and IFC. Prestigious events at IIM Ahmedabad, IIM Bangalore, and ISB Hyderabad further exposed IPs to international best practices.

This information was shared by Minister of State for Corporate Affairs and Road Transport & Highways, Shri Harsh Malhotra, in the Lok Sabha today.