As of March 31, 2025, a total of 1,194 companies have been successfully resolved under the IBC, helping creditors recover ₹3.89 lakh crore. This amounts to over 170% of the liquidation value and more than 93% of the fair value assessed at the time of admission into the insolvency process.
According to the Reserve Bank of India’s Financial Stability Report (June 2025), gross non-performing assets (GNPAs) fell to a multi-decadal low of 2.3% by March 2025, reflecting the stronger health of the banking sector.
Further, the RBI’s Report on Trends and Progress of Banking in India 2023–24 highlighted that out of total recoveries worth ₹96,325 crore by scheduled commercial banks, IBC alone accounted for ₹46,340 crore — nearly half the total.
To strengthen the framework, the government has undertaken six legislative amendments and introduced over 100 regulatory changes since the Code’s inception, aimed at reducing delays and improving procedural efficiency.
The IBC has also triggered a behavioural shift, instilling discipline among debtors and strengthening creditor rights. Capacity-building measures have been stepped up, with the Insolvency and Bankruptcy Board of India (IBBI) conducting training programmes and collaborating with institutions such as the World Bank, IICA, IFC, and premier management schools like IIM Ahmedabad, IIM Bangalore, and ISB Hyderabad.
Malhotra said the IBC continues to play a pivotal role in promoting entrepreneurship, credit availability, and investor confidence, while maximising asset value and protecting stakeholder interests.
