Banks took a haircut of 69 per cent while resolving IBC cases: Report

Haircuts are defined as the losses incurred by the creditors (banks in this case) on resolving the bad debts or stressed assets

bad banks, loans, IBC
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BS Web Team New Delhi
For every Rs 100 admitted for the claims under the Insolvency and Bankruptcy Code (IBC), the banks could realise only 30 per cent of the value. According to a report by Business Line, the latest IBBI data till June 30 showed that the banks took a haircut of Rs 69 for every Rs 100 of admitted claims. 

However, this comes down to Rs 17 when it is considered relative to the fair value of the assets, the report added. Haircuts are defined as the losses incurred by creditors (banks in this case) on resolving bad debts or stressed assets. 

According

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First Published: Aug 25 2022 | 10:35 AM IST

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