How IBC can improve the lending ecosystem

The Insolvency and Bankruptcy Code, 2016 (IBC) was a landmark reform to India's insolvency resolution procedures. Its five-year journey has brought important lessons for the credit industry.

Key Achievements - 45% recovery rate observed by scheduled commercial banks - India's rank in 'Ease of Resolving Insolvency' improved from 136th in 2016 to 52nd in 2020 - Single window clearance for insolvency resolution

Areas for Improvement - Delays in resolving cases - Low recovery rates in certain categories - Need for stronger pre-insolvency frameworks - Capacity building for NCLT benches