Creditors got Rs 2.45 trn from 394 resolution cases under IBC: FinMin
Financial creditors, including banks, realised Rs 2.45 trillion from approved resolution plans for 394 corporate insolvency resolution cases under the Insolvency and Bankruptcy Code as on June 30, Minister of State for Finance Pankaj Chaudhary said. Creditors got Rs 2.37 trillion through approved resolution plans of top 100 CIRPs, which is over 36 per cent of the admitted claims.
About 4,540 cases were admitted for the corporate insolvency resolution process under IBC until June 30, 2021, Chaudhary said in response to a query in Lok Sabha.
In a separate response, the minister said, the separate framework for resolution of systemically important financial service providers other than banks, has led to approval of a resolution plan that will help in realising Rs 37,167 crore.
However, in many cases under the IBC, the haircut taken by the lenders reached 80-90 per cent. As per publicly available data, 240 corporate debtors that have been liquidated till December 2020, had outstanding claims of Rs 33,086 crore, with assets valued at Rs 1,099 crore.
The lawmakers were also informed that recovery by banks as a percentage of their gross non-performing assets dipped in FY21 due to the Covid-19 pandemic. Scheduled Commercial Banks (SCBs) recovered Rs 4.18 trillion during the last three financial years, with recovery as a percentage of their gross NPA increasing from 13.1 per cent in FY18 to 15.1 per cent in FY19. The recovery increased to 15.8 per cent in FY20 to drop to 12.8 per cent in FY21 in the backdrop of the pandemic.