Rs 3.5 Lakh Cr Recovered Under IBC: Ravi Mital
By Rediff Money Desk, New Delhi Oct 01, 2024 17:25
Lenders have recovered Rs 3.5 lakh crore through resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) in the last eight years, IBBI Chairperson Ravi Mital said. The NCLT has approved 1,000 resolution plans, with 450 cleared in the past two years.
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.
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.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 8.29 ( -0.84)
- 38643247
- Srestha Finvest
- 0.63 (+ 5.00)
- 36611024
- Home First Finance
- 1,074.55 (+ 2.10)
- 22560337
- G G Engineering
- 1.85 ( -0.54)
- 20632419
- Ola Electric Mobilit
- 93.26 (+ 6.68)
- 14710812
MORE NEWS
FSSAI Reclassifies Packaged Water as High-Risk,...
The FSSAI has reclassified packaged drinking water as a high-risk food category,...
Sebi Bans 'Baap of Chart' & 6 Others for...
Sebi has banned 'Baap of Chart' and six others for one year for providing unregistered...
RBI Urges Banks to Reduce Inoperative Accounts
The RBI has directed banks to reduce inoperative accounts urgently, citing concerns...