Business Standard

BS Number Wise: Asset reconstruction companies need to rebuild

They have been losing business as the IBC process picks up pace

IBC, Asset reconstruction companies, ARCs

ARCs had a recovery rate of 42.6 per cent at their peak between 2005-06 and 2008-09 but has declined since.

Ishaan Gera New Delhi
India has repeatedly tried to fix the problem of debt recovery. First with debt recovery tribunals, then asset reconstruction companies (ARCs), and later instituted the Insolvency and Bankruptcy Code in 2016.

Though IBC has not performed as well as expected, a Business Standard analysis shows that its recovery rates are higher than other debt settlement modes.

Companies recovered a third of the amount involved under the IBC

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First Published: Oct 21 2022 | 10:23 PM IST

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