IBC's resolution capacity has increased, but more needed'

The debt resolution capacity under Insolvency and Bankruptcy Code (IBC) should be stepped up by more than three fold to handle about 1,000 cases a year, said a senior government official

- Gireesh Chandra Prasad

Speaking at the seventh foundation day of the Insolvency and Bankruptcy Board of India (IBBI), the rule maker and regulator, ministry of corporate affairs secretary Manoj Govil said the pace of debt resolution under IBC was steadily increasing and expectation is that the number of corporate rescue cases will go up to 300 this financial year from 180 cases last financial year. Govil said while this is a large number, the question is whether it should be sufficient as a study had shown that generally about 5,000 new bankruptcy cases are initiated every year.