Realisation through IBC 201% of liquidation value as of Sept: RBI

SARFAESI and Debt Recovery Tribunals have yielded recovery rates comparable to the IBC mechanism, says Trend and Progress Report

In cases where corporate insolvency resolution processes (CIRPs) were initiated under the Insolvency and Bankruptcy Code by financial creditors (FCs), realisations until September 2022 were close to 201 per cent of the liquidation value, according to data released in the Reserve Bank of India’s (RBI’s) Trend and Progress Report for 2021-22. 

The report also noted that SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) and Debt Recovery Tribunals have yielded recovery rates comparable to the IBC mechanism. As of the latest data for 2021-22, the recovery rate under the IBC stood at 23.8 per cent, while