IBC recoveries improved to 37% in 2024-25; cases referred fell

Banks also continued to clean up their balance sheets through sale of NPAs to ARCs

- SUBRATA PANDA

Indian banks’ recovery rate from bad assets under the Insolvency and Bankruptcy Code improved to nearly 37 per cent in 2024-25 from 28.3 per cent in the previous year.

‘The recovery rate through cases referred under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act improved to 31.5 per cent during this period, compared to 25.4 per cent in the previous year.

This lifted the overall recovery rate across all resolution channels to 18 per cent in 2024-25, up from 17.2 per cent a year earlier, according to data released by the Reserve Bank of India (RBI) in its Trends and Progress of Banking in India report.