Creditors realised Rs 4 lakh crore under IBC till Sep: RBI report

Mumbai, Dec 31 (PTI) Creditors have realised Rs 4 lakh crore under the resolution plans initiated under the Insolvency and Bankruptcy Code till September 30, 2025, according to a Reserve Bank report on Wednesday.

Since the provisions relating to the corporate insolvency resolution process came into force in December 2016, a total of 8,659 CIRPs have been initiated till September 30, 2025, of which 6,761, or 78.1 per cent, have been closed.

The primary objective of the Insolvency and Bankruptcy Code is rescuing corporate debtors (CDs) in distress.

The code has rescued 187 CDs during April to September 2025, while the total number of such debtors since inception is 3,865.

"Cumulatively till September 30, 2025, creditors have realised Rs 3.99 lakh crore under the resolution plans, which is around 170.1 per cent of liquidation value and 93.79 per cent of fair value (based on 1,177 cases where fair value has been estimated)," said the RBI's financial stability report.

In terms of percentage of admitted claims, the creditors have realised more than 32.4 per cent.

Till September 2025, the report said the total number of CIRPs ending in liquidation was 2,896, of which final reports have been submitted for 1,529 CDs.

These corporate debtors together had outstanding claims of Rs 4.44 lakh crore, but the assets were valued at only Rs 0.17 lakh crore. The liquidation of these companies resulted in realisation of 90.7 per cent of the liquidation value," it said.

The 1,300 CIRPs that have yielded resolution plans till September 2025 took an average of 603 days for conclusion of process, while incurring an average cost of 1.1 per cent of liquidation value and 0.6 per cent of resolution value.

Similarly, the 2,896 CIRPs, which ended up in orders for liquidation, took an average 518 days for conclusion, the RBI said.

Of the 8,659 CIRPs, 3,183 were related to manufacturing sector, followed "real estate, renting and business activities" (1,903) and construction (1,052). Among others, the cases relate to "wholesale and retail trade", "hotels and restaurants", "electricity and others", and "transport, storage, communication". PTI NKD CS TRB