Key Points
Introduction of a focused bankruptcy law has helped improve the credit culture in India, but the last few years have seen a decline in recoveries and the resolution timelines getting prolonged, Crisil Ratings on Friday..
In a note to observe the seven years of the Insolvency and Bankruptcy Code (IBC), the rating agency said the recovery rates have fallen to 32 per cent in September 2023, from 43 per cent in March 2019...
At the same time, the average resolution time has increased from 324 days to 653 days, versus the stipulated 330 days, it said...
The IBC has helped in resolving debt worth Rs 3.16 lakh crore stuck in 808 cases in the past seven years, the leading credit rating agency said...
The rating agency said 90 amendments have been carried out to the law so far, including some over the last year like approval for sale of assets/resolution plan on a segregated basis, increasing the number of National Company Law Tribunal benches to 16 and extending timelines for filing claims...
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