Archive · 22 May 2025
IBC: Resolutions Rise, Borrower Behavior Improves
The IBC law in India is helping companies pay back their debts better.
More companies are now being successfully restructured rather than being shut down.
Many cases are resolved before going to court because company owners want to keep control.
When loans become overdue, they are now resolved much faster.
Although improvements have been observed, the process is still taking too long to resolve the debts.
IBC resolutions now outnumber liquidations.
Promoters are keen to settle dues to retain company control.
Significant improvement in borrower behavior.
Overdue loan duration has decreased.
However, resolution times are still exceeding the legal timeframe.
- Who
- Insolvency & Bankruptcy Board of India (IBBI)
- What
- IBC resolutions now outpace liquidations; improved borrower behavior.
- When
- 2017-2024
- Where
- India
- Why
- To improve corporate debt resolution and assess the impact of IBC.
Concerns
Improvements
Resolution Time
Concerns
Resolution process takes too long, often exceeding the extended deadline.
Improvements
Improvements are observed with successful resolution plans.
- IBC Enactment Year
- 2016
- Average Resolution Time
- 597 days
- Resolution to Liquidation Ratio
- 2:1
- Pre-admission settlements
- 30,310
- Cases Resolved via Resolution Plans
- 1,194
