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IBC process helps recover Rs 70,000-crore bad loans in FY19: CRISIL

The recovery rate is twice the liquidation value of all 94 cases resolved says CRISIL.

insolvency, bankruptcy, ibc
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The IBC process has shifted the balance of power from the debtor to the creditor

Subrata Panda Mumbai
Not only is the recovery rate of the 94 cases resolved so far under the insolvency and bankruptcy code (IBC) higher than the recoveries made through other mechanisms, the recovery rate is twice the liquidation value of the all the 94 cases resolved, said a report by credit rating agency CRISIL.

The recovery rate for the 94 cases resolved through IBC by 2018-19 (FY19) is 43 per cent, compared with 26.5 per cent through earlier mechanisms. Moreover, Rs 70,000 crore has been recovered in FY19, which is almost twice the figure recovered through the debt recovery tribunal, Securitisation and Reconstruction

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First Published: May 14 2019 | 5:16 PM IST

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