Ten corporates under IBC comprise 80% of total bank exposure to Rs 3.2 trn

The first list of 12 large corporate defaulters owe banks around Rs 2.7 trn of which only Rs 1.28 trn is estimated to be recoverable, according to research and rating agency CLSA

The implementation of Insolvency and Bankruptcy Code (IBC), which came into effect in June 2016, has had a sluggish performance over the past two years. With the Reserve Bank of India (RBI) notifying 37 companies with a gross outstanding debt of over Rs 50 billion each, recovery rates under the IBC process have been unimpressive, and in fact, worrisome in certain cases.

The first list of 12 large corporate defaulters owe banks around Rs 2.7 trillion of which only Rs 1.28 trillion is estimated to be recoverable, according to research and rating agency CLSA. This means on average the country’s