Insolvency Code: Rs 4 Lakh Crore Rescued

The Insolvency and Bankruptcy Code has facilitated creditors in realizing Rs 4 lakh crore through resolution plans up to September 2025. Out of 8,659 initiated corporate insolvency resolution processes, 78.1% have closed successfully. The code aims to assist distressed corporate debtors, with a notable focus on manufacturing, real estate, and business sectors.

Creditors have secured Rs 4 lakh crore through resolution plans under the Insolvency and Bankruptcy Code by September 30, 2025, as detailed in a Reserve Bank report released Wednesday.

Since its introduction in December 2016, a total of 8,659 corporate insolvency resolution processes (CIRPs) have begun, with 78.1% closed by this year. The code's main goal is to aid distressed corporate debtors.

Resolution plans rescued 187 corporate debtors between April and September 2025, raising the total to 3,865. Despite the liquidation value being just Rs 0.17 lakh crore, creditors realized 90.7% of this amount. The most affected sectors include manufacturing, real estate, and business activities.

(With inputs from agencies.)