India's Insolvency and Bankruptcy Code (IBC), introduced in 2016, has completed a decade, marking a significant milestone in the country's efforts to improve insolvency resolution, credit discipline and financial stability.
Over the past ten years, the IBC has emerged as a key mechanism for resolving stressed assets and reviving financially distressed companies. As of March 2026, 1,419 cases had resulted in approved resolution plans, enabling creditors to realise more than Rs 4 lakh crore. Recovery values stood at 95% of fair value and 167% of liquidation value, highlighting the effectiveness of the framework.
A total of 8,987 cases had been admitted under the Code, of which 7,102 were closed. Around 58% of these closed cases resulted in successful rescue or revival of companies, while the remaining cases proceeded to liquidation. The framework has also encouraged out-of-court settlements, with more than 30,000 cases being resolved before admission, involving nearly Rs 14 lakh crore.
The IBC has contributed significantly to improving recovery rates and reducing resolution timelines. Average recoveries have increased to around 30% from 15–20% before the Code, while resolution periods have reduced from 6–8 years to nearly 2 years. The Reserve Bank of India has identified IBC as the most effective recovery mechanism, accounting for over half of the banking sector's stressed asset recoveries in FY25.
Studies by leading management institutes have also highlighted improvements in borrower discipline, business revival and investor confidence following successful resolutions. The market value of resolved listed companies has increased substantially after resolution, reflecting stronger operational performance and renewed growth prospects.