**Executive Summary**
The Department of Financial Services (DFS) organized a half-day workshop on May 19, 2026, to deliberate on the impact of the Insolvency and Bankruptcy (Amendment) Act, 2026. The session aimed to strengthen stakeholder understanding of the amended provisions and their implementation within the banking sector. Key focus areas included addressing resolution delays, enhancing credit discipline, and maximizing the value of stressed assets.
**Key Points / Main Content**
**Performance Statistics of the IBC**
* As of December 2025, over 8,800 Corporate Insolvency Resolution Processes (CIRPs) have been admitted under the Code.
* Creditors have realized more than ₹4.11 lakh crore through approved resolution plans.
* More than 4,000 corporate debtors have been rescued via resolutions, settlements, withdrawals, or appeal-related closures.
**Recent Legislative Amendments**
* The 2026 Amendment introduces specific reforms concerning group insolvency and cross-border insolvency.
* New provisions focus on creditor-initiated insolvency resolution processes to strengthen the framework.
* The amendments aim to shift the primary focus from liquidation toward the revival and value maximization of stressed businesses.
**Operational and Strategic Goals**
* The framework seeks to establish a time-bound, creditor-driven insolvency resolution process.
* Efforts are being directed toward strengthening institutional capacity and fostering creditor confidence through transparency.
* The Code aims to improve India’s ease of doing business by accelerating resolution processes and improving recovery rates.
**Challenges to Address**
* Ongoing efforts are required to mitigate delays, capacity constraints, and prolonged litigations.
* Enhanced coordination among stakeholders is necessary to ensure the framework remains efficient, fair, and future-ready.
**Impact Analysis**
**Banking and Financial Institutions (Public Sector Banks, NARCL, IDRCL, ASREC)**
**Impact**
Banks benefit from strengthened repayment discipline and a more robust framework for recovering stressed assets. The focus on revival over liquidation helps in value maximization of assets.
**Action Required**
Senior executives must align internal recovery processes with the amended provisions, particularly regarding creditor-initiated insolvency.
**Committee of Creditors (CoC)**
**Impact**
The CoC is impacted by improved legal and operational clarity, which facilitates better decision-making during the resolution process.
**Action Required**
CoC members must utilize the presentations and guidelines provided by the MCA and IBBI to implement the amended provisions effectively and transparently.
**Insolvency and Bankruptcy Board of India (IBBI) and Ministry of Corporate Affairs (MCA)**
**Impact**
These bodies are responsible for the institutional capacity building and the regulatory oversight required to keep the framework "future-ready."
**Action Required**
Continued focus on addressing capacity constraints and providing legal clarity to stakeholders to ensure the efficient implementation of the 2026 amendments.
Key Entities Referenced
Insolvency and Bankruptcy (Amendment) Act, 2026: A legislative amendment introducing reforms such as group insolvency, cross-border insolvency, and creditor-initiated resolution processes to strengthen the insolvency framework.
Insolvency and Bankruptcy Code (IBC): The primary legal framework in India for time-bound insolvency resolution, credit discipline, and maximizing the value of stressed assets.
Insolvency and Bankruptcy Board of India (IBBI): The regulatory authority responsible for overseeing insolvency proceedings and the implementation of the Code in India.
Department of Financial Services (DFS): The department within the Ministry of Finance overseeing the banking sector's role and the impact of insolvency reforms on financial institutions.
Ministry of Corporate Affairs (MCA): The central government ministry responsible for the administration and implementation of the Insolvency and Bankruptcy Code.
Ministry of Finance
DFS organises Half-Day Workshop on Insolvency
and Bankruptcy (Amendment) Act, 2026
Workshop deliberates on impact of recent IBC amendments
on banking sector and insolvency resolution ecosystem
Secretary, DFS highlights role of IBC in strengthening credit
discipline and enabling value maximisation of stressed assets
More than 8,800 CIRPs admitted under the Code till
December 2025; creditors realise over ₹4.11 lakh crore
through approved resolution plans
Posted On: 19 MAY 2026 8:13PM by PIB Delhi
The Department of Financial Services (DFS), Ministry of Finance, organised a half-day workshop on the
Insolvency and Bankruptcy (Amendment) Act, 2026 in New Delhi today. The workshop was chaired by
Shri M. Nagaraju, Secretary, DFS and attended by senior officials from the Ministry of Corporate Affairs
(MCA), Insolvency and Bankruptcy Board of India (IBBI), leading legal experts, senior executives and
officials from public sector banks and other financial institutions, namely, National Asset Reconstruction
Company Limited (NARCL), India Debt Resolution Company Limited (IDRCL) and ASREC (India)
Limited.
The workshop was organised with the objective of deliberating upon the impact of the recent amendments
to the Insolvency and Bankruptcy Code (IBC) on the banking sector and strengthening stakeholder
understanding regarding implementation of the amended provisions of the Code.It was highlighted during the workshop that till December 2025, more than 8,800 Corporate Insolvency
Resolution Processes (CIRPs) had been admitted under the Code, with creditors realising over ₹4.11 lakh
crore through approved resolution plans and more than 4,000 corporate debtors being rescued through
resolution, settlements, withdrawals or appeal-related closures.
Shri M. Nagaraju, Secretary, DFS highlighted the role played by the IBC in establishing a time-bound and
creditor-driven insolvency resolution framework in the country. He stated that the Code has strengthened
repayment discipline and shifted the focus from liquidation towards revival and value maximisation of
stressed businesses. On the recent amendments relating to group insolvency, cross-border insolvency and
creditor-initiated insolvency resolution process, he emphasised that these reforms would further strengthen
the insolvency framework and address delays in resolution.
Shri Ravi Mital, Chairperson, IBBI emphasised the role of the IBC in strengthening institutional capacity,
fostering creditor confidence and promoting transparency in insolvency resolution processes. He noted
that the recent amendments would improve coordination among stakeholders and ensure that the
insolvency resolution framework remains efficient, fair and future-ready.
The workshop featured presentations by MCA and IBBI on the recent amendments and their implications
for the Committee of Creditors (CoC) and other stakeholders. The discussions facilitated greater clarity on
legal and operational aspects relating to the implementation of the amended provisions of the Code.In his closing remarks, Shri Sanjay Lohiya, Special Secretary, DFS acknowledged the important role
played by the IBC in accelerating resolution processes, improving recoveries and maximising asset value.
He also highlighted the need for continued efforts to address delays, capacity constraints and prolonged
litigations, while noting that the IBC has contributed significantly towards improving the ease of doing
business in India.
The workshop concluded with deliberations that reinforced the importance of effective and timely
resolution of stressed assets in line with the Government’s vision of a strong, transparent and efficient
financial system.
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