Bankruptcy resolution hits new record in FY25

Creditors and investors salvaged a record 284 companies from bankruptcy in FY25 under provisions of the Insolvency and Bankruptcy Code (IBC), as per data from the National Company Law Tribunal (NCLT).

- Gireesh Chandra Prasad

NEW DELHI:

This improvement comes as the government filled vacancies in bankruptcy tribunals and the sector's regulator continued refining rules to enhance the efficiency of the corporate turnaround ecosystem.

Creditors stand to recover over ₹67,000 crore from these transactions in the recently concluded financial year, a 42% increase compared to the amount recoverable from the turnaround of 275 companies achieved in the same period last year, the data showed.

This development also comes amid improving outcomes under IBC—the key policy tool for repairing the balance sheets of lenders and corporations, which is a priority for the NDA government that is banking on a fresh cycle of private investments to bolster economic growth and create jobs.