See Full Document Text
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 2764
ANSWERED ON TUESDAY, MARCH 17, 2026/ 26 PHALGUNA, 1947 (SAKA)
HAIRCUT IN IBC
2764. Dr. V. Sivadasan:
Will the Minister of Corporate Affairs be pleased to state:
(a) the amount of haircut incurred under resolutions completed through the Insolvency and
Bankruptcy Code (IBC) since its inception, year-wise;
(b) the total claims admitted vis-à-vis the amount realised by banks and financial institutions
during this period;
(c) the effective loss borne by public sector banks due to such haircuts; and
(d) whether any assessment has been made on the long-term impact of IBC resolutions on the
financial health of banks?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS
[SHRI HARSH MALHOTRA]
(a) to (c): Year-wise details in respect of amount realised by all Financial Creditors
including banks and financial institutions, through resolution plans under the IBC is placed at
Annexure.
(d): IBC has played a crucial role in improving the overall health of India's banking sector.
The Gross Non-Performing Assets (GNPAs) of banks have significantly declined from a high
of 11.6% in 2018 to a low of 2.2% at the end of September 2025, as reported in the latest RBI
Financial Stability Report (December 2025).
The IBC has also proven to be an effective channel for recovering NPAs for Scheduled
Commercial Banks (SCBs). The RBI’s Report on Trends and Progress of Banking in India for
2024-25 (released on December 29, 2025) highlights that in the total amount of ₹1,04,099 crore
recovered by SCBs through various channels, the share of IBC increased to 52.4%.
*****Annexure to Rajya Sabha Unstarred Question No.2764 answered on 17.03.2026
Amount in Rs. crore
Sl. No Period Amount realised by Financial Realisation as % of
Creditors (in Rs. Crore) admitted claims
1.
FY 2017-2018 3,807 54%
2.
FY 2018-2019 1,07,337 55%
3.
FY 2019-2020 39,240 27%
4.
FY 2020-2021 27,102 27%
5.
FY 2021-2022 46,198 24%
6.
FY 2022-2023 54,125 39%
7.
FY 2023-2024 44,736 28%
8.
FY 2024-2025 53,718 38%