MUMBAI: According to a Reserve Bank report released Wednesday, creditors have recovered ₹4 lakh crore under resolution plans initiated under the Insolvency and Bankruptcy Code (IBC) as of September 30, 2025.
Since the introduction of corporate insolvency resolution processes in December 2016, a total of 8,659 Corporate Insolvency Resolution Processes (CIRPs) have been initiated, with 6,761 (or 78.1%) successfully completed by September 30, 2025.
The IBC primarily aims to assist corporate debtors (CDs) in distress. During the period from April to September 2025, the code aided 187 CDs, bringing the total number of aided debtors to 3,865 since the IBC’s inception.
“By September 30, 2025, creditors have cumulatively recovered ₹3.99 lakh crore through resolution plans, which equates to approximately 170.1% of the liquidation value and 93.79% of the fair value based on 1,177 estimated cases,” the RBI’s financial stability report stated.
In terms of admitted claims, creditors have recovered over 32.4%.
As of September 2025, 2,896 CIRPs concluded with liquidation, and final reports have been submitted for 1,529 CDs. These debtors had outstanding claims totaling ₹4.44 lakh crore, but their assets were valued at only ₹0.17 lakh crore, resulting in a recovery of 90.7% of the liquidation value.
The 1,300 CIRPs that yielded resolution plans by September 2025 averaged 603 days for completion, with an average cost of 1.1% of liquidation value and 0.6% of resolution value.
In contrast, the 2,896 CIRPs that resulted in liquidation orders took an average of 518 days to conclude, according to the RBI.
Out of the 8,659 CIRPs, 3,183 were from the manufacturing sector, followed by 1,903 in “real estate, renting and business activities,” and 1,052 in construction. Other sectors include wholesale and retail trade, hotels and restaurants, electricity and other services, and transport, storage, and communication.
