 "Ravi Mital")
Ravi Mital, IBBI chairperson
Lenders have recovered Rs 3.5 trillion through resolution of stressed assets under the insolvency process in the last eight years, a period during which NCLT approved 1,000 resolution plans, IBBI Chairperson Ravi Mital said on Tuesday.
The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-bound resolution of stressed assets. The National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) are key institutions in the IBC ecosystem.
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In the last two years, NCLT has cleared 450 resolution plans. This accounts for 45 per cent of the 1,000 such plans approved in the last eight years, Mital said at a function to mark the eighth foundation day of the IBBI.
According to him, Rs 3.5 trillion has been recovered directly by lenders, of which Rs 1 trillion was in the last two years.
Under the IBC, the recovery is about 84 per cent of the assets’ fair value, as per official data.
Chief Economic Advisor V Anantha Nageswaran said a continuously improving and evolving bankruptcy system is important for economic growth.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 01 2024 | 5:44 PM IST
