‘NPA recoveries via IBC at Rs 70,000 crore’

New Delhi: Bad loan recoveries in the last fiscal effected through the Insolvency and Bankruptcy Code (IBC) route was at Rs 70,000 crore, posting a recovery rate of 43 pc, and was twice the Rs 35,500 crore recovered through previous resolution mechanisms like the Debt Recovery Tribunal and Lok Adalat, as per a report by ratings firm Crisil.

“The recovery rate for the 94 cases resolved through IBC by fiscal 2019 is 43 pc, compared with 26.5 pc through earlier mechanisms. What’s more, the recovery rate is also twice the liquidation value for these 94 cases, which underscores the value maximisation possible through the IBC process,” said CRISIL Ratings President Gurpreet Chhatwal. The IBC has made material progress in addressing  the logjams it was supposed to – which is faster recovery of stressed assets and quicker resolution timelines, Crisil said.

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