Economic Survey Highlights Banking Recovery and IBC Success

“There’s a considerable improvement in sales, liquidity, market cap, and employee expenses of companies that were resolved under the IBC. If these companies are showing 50% increase in employee expenses, I think the insolvency system has succeeded.”

“When a company goes into insolvency, we do its enterprise valuation. Based on that fair valuation, we have recovered 94%. IBC cannot be held responsible for deterioration (in asset value) for a period when it was not even involved.”

“IBC acts as a strong deterrent for corporate defaulters. The law works even without constant enforcement due to its strict consequences. Out of around 54,000 cases filed, around 47,000 have already been disposed of. Bank profits have also increased, and RBI considers IBC recoveries as a major factor in financial stability.”

“With improved infrastructure and continued stakeholder support, even better results could be achieved.”

“The Code has evolved through several amendments, demonstrating its dynamic and adaptable nature. New resolution frameworks and exit windows have been introduced to make the system more efficient.”

“For banks, the only dangerous space is unsecured retail loans. We need to work on that. We know that there are infrastructural issues but we should be ready.”

“We are seeing an uptick in consumer debt, and the need for a personal insolvency framework is hugely important at the moment.”