Archive · 28 May 2025
ICRA: Corporate Insolvency Cases Dip in FY2025, Recoveries Vary
In India, fewer companies faced debt problems in 2025, but the money recovered by lenders varied.
A credit rating firm, ICRA, reports the situation.
The number of companies going through the process dropped, but lenders often lost a significant portion of the money they were owed.
However, some companies have started recovering a large portion of the debt from big firms in the last quarter of 2025.
While the goal is quick solutions, resolving debt issues takes longer than expected.
Corporate insolvency cases decreased by 28% to 724 in FY2025.
The number of approved resolution plans slightly decreased.
Overall recoveries remain low, with a 67% average haircut for lenders.
Recoveries in Q4 FY2025 were higher, especially in large cases.
Resolution times remain lengthy, exceeding the IBC's stipulated timeframe.
- Who
- ICRA (credit rating firm)
- What
- Decline in corporate insolvency cases and mixed recovery rates.
- When
- FY2025
- Where
- India
- Why
- To streamline financial distress resolution and protect creditors.
ICRA
Stakeholders
Effectiveness of IBC
ICRA
Efforts to improve the CIRP process are positive.
Stakeholders
Recoveries remain low, and resolution times are too long.
- Companies Admitted
- 724 (FY2025)
- Decline in Admissions
- 28% (FY2025)
- Approved Resolution Plans
- 259
- Average Haircut
- 67%
- Recovery from Resolution
- 33%
- Recovery in Q4 FY2025 (large cases)
- 77%
- Average Resolution Time
- 713 days (as of March 31, 2025)
