Archive · 30 Jan 2026
Economic Survey Highlights Banking Recovery and IBC Success
The Economic Survey 2026 shows that India's banking sector is doing much better.
The recovery rate for bad loans has almost doubled in seven years.
The Insolvency and Bankruptcy Code (IBC) has helped companies and banks by making sure that money is recovered faster and more efficiently.
The survey also talks about how the microfinance sector has grown but warns that too much focus on growth can sometimes hurt the people who take these loans.
The survey suggests that the IBC needs to work faster to clear the backlog of cases.
It also highlights the success of the Pradhan Mantri Jan Dhan Yojana, which has opened many bank accounts for people in rural areas.
The survey also mentions the new Securities Markets Code (SMC) which aims to make the stock market more transparent and fair.
The recovery rate for non-performing assets (NPAs) of Scheduled Commercial Banks (SCBs) rose from 13.2% in FY18 to 26.2% in FY25.
The Insolvency and Bankruptcy Code (IBC) has helped improve credit discipline and reduce bank bad loans.
The pre-packaged insolvency resolution process (PPIRP) for MSMEs has seen low uptake with only 14 cases admitted in the past four years.
The microfinance sector has expanded rapidly but faces challenges with overleveraged borrowers and the need for better alignment with household welfare.
The Securities Markets Code (SMC) aims to overhaul the regulatory architecture, strengthen investor protection, and support capital formation.
- Who
- Economic Survey 2026, RBI, IBBI, NCLT, Sa-Dhan, MFIN, Sebi
- What
- Improvements in banking sector, asset quality, and IBC effectiveness
- When
- Thursday (specific date not mentioned)
- Where
- India, Parliament, INSOL International Conclave 2026
- Why
- To highlight the success and areas of improvement in the IBC process and banking sector
- Recovery Rate
- 94% of the fair value of resolved businesses
- NPA Recovery
- Doubled from 13.2% in FY18 to 26.2% in FY25
- RRB Consolidation
- Reduced from 196 to 28 under One-State-One-RRB policy
- MSME Loans
- Over Rs 3.2 lakh crore processed via digital CAM in 2025
- Microfinance Borrowers
- Doubled from 330 lakh in FY14 to 627 lakh in FY25
- Jan Dhan Accounts
- 55.02 crore opened as of March 2025
- Financial Inclusion Index
- Rise to 67.0 in March 2025 from 64.2 a year earlier
- IBC Case Backlog
- 30,600 cases as of March 2025
- PPIRP Cases
- Only 14 cases admitted in the past four years
Sources
IBC is not a recovery tool, its goal is to turn companies productive: IBBI chairperson Ravi Mital
Economic Survey seeks faster insolvency resolution timelines, flags low MSME case uptake
Banking sector shows strong recovery, asset quality improves: Economic Survey
Economic Survey views Sebi code as blueprint for regulatory reform
Economic Survey warns growth-driven microfinance may undermine household welfare
Extended insolvency timelines can trigger value erosion: Economic Survey
Economic Survey flags urgent need for capacity expansion in IBC framework
