Cases admitted under the corporate insolvency resolution process (CIRP) rose to 7,325 in the October-December quarter of the financial year 2023-24 from 6,199 in the corresponding quarter last year, latest data from the Insolvency and Bankruptcy Board of India (IBBI) showed. This marks a jump of 18 percent on a year-on-year basis.
A total of 891 cases were approved for resolution and 2,376 cases went for liquidation, whereas 1,899 cases are in the CIRP process, the data for October-December FY24 quarter showed. The number of cases closed under the process jumped to 5,426 in October-December FY24 from 4,199 a year back.
Till October-December Fy24, creditors have realised Rs 3.21 lakh crore, the data showed. "The haircut for creditors relative to the fair value of assets was than 14 percent while relative to their admitted claims is around 68 percent," the IBBI report said.
Also read: Sitharaman vows to extend reforms, focus on IBC and PSB professionalisation
Sanjay Agarwal, senior director of BFSI at CareEdge, said that the rise in admission and closure of cases has shown that the insolvency and bankruptcy code (IBC) has been helping the companies. “A trend of rise in the number of cases being admitted and closed under IBC has been showing efficiency in the process.”
The manufacturing sector saw the maximum number of cases with 38 percent of the total cases. Real estate saw 21 percent and construction saw 12 percent of the total cases, the data showed.
Finance Minister Nirmala Sitharaman on February 2 said the government will continue with key reforms such as the Insolvency and Bankruptcy Code (IBC) and professionalisation of public sector banks (PSBs). "Despite the odds, we are doing a lot of reforms which are baring results. Systematic reforms have continued, whether it was pre covid GST or IBC and professionalisation of public sector banks and so on, " she told Network18 Editor-in-Chief Rahul Joshi in an exclusive interview.
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