Rs 3.5 Lakh Cr Recovered Under IBC: Ravi Mital

New Delhi, Oct 1 (PTI) Lenders have recovered Rs 3.5 lakh crore through resolution of stressed assets under the insolvency process in the last eight years, a period during which NCLT approved 1,000 resolution plans, IBBI Chairperson Ravi Mital said on Tuesday.

The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-bound resolution of stressed assets. The National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) are key institutions in the IBC ecosystem.

In the last two years, NCLT has cleared 450 resolution plans. This accounts for 45 per cent of the 1,000 such plans approved in the last eight years, Mital said at a function to mark the eighth foundation day of the IBBI.

According to him, Rs 3.5 lakh crore has been recovered directly by lenders, of which Rs 1 lakh crore was in the last two years.

Under the IBC, the recovery is about 84 per cent of the assets' fair value, as per official data.

Chief Economic Advisor V Anantha Nageswaran said a continuously improving and evolving bankruptcy system is important for economic growth.