Creditors realised Rs 4 lakh crore under IBC till Sept, says RBI report

Mumbai: Creditors have realised nearly Rs 4 lakh crore under resolution plans implemented through the Insolvency and Bankruptcy Code (IBC) up to September 30, 2025, according to the Reserve Bank of India’s Financial Stability Report released on Wednesday.

Since the corporate insolvency resolution process (CIRP) came into effect in December 2016, a total of 8,659 cases have been initiated, of which 6,761, or 78.1 per cent, have been closed.

The RBI noted that the primary objective of the IBC is the rescue of financially distressed corporate debtors.

During April–September 2025, the code facilitated the rescue of 187 corporate debtors, taking the cumulative number of successful resolutions since inception to 3,865.

As of September 30, 2025, creditors had realised Rs 3.99 lakh crore under resolution plans—about 170.1 per cent of liquidation value and 93.79 per cent of fair value, based on 1,177 cases where fair value was estimated.

This translated into recoveries of over 32.4 per cent of admitted claims.

The report said 2,896 CIRPs had ended in liquidation by September 2025, with final reports submitted in 1,529 cases.

These companies had outstanding claims of Rs 4.44 lakh crore, against assets valued at just Rs 0.17 lakh crore. Liquidation yielded 90.7 per cent of the assessed liquidation value.

Resolution cases took an average of 603 days to conclude, while liquidation cases averaged 518 days.

Manufacturing accounted for the highest number of CIRPs, followed by real estate and construction.