1-year report card: Insolvency and Bankruptcy Code gets off to a slow start

The first of a two-part series explores how the proceedings under the IBC have taken off and whether the code is helping banks recover their unpaid loans

Only 1.9 per cent of the cases admitted under the Insolvency and Bankruptcy Code (IBC) were resolved by the end of December 2017 — a year after the code was put in place. In another 5.6 per cent of the cases admitted, companies are undergoing liquidation.

In this set of resolved cases, banks and other financial creditors are expected to recover Rs 18.55 billion against unpaid dues worth Rs 55.24 billion in the coming years (a recovery rate of 33.6 per cent).

These resolved cases do not include the 37 large debtors that the banks took through the insolvency process upon instructions