IGI Logo

The Reserve Bank of India in its latest report has said that 78.1% or 6,761 Corporate Insolvency Resolution Process (CIRPs) have been closed till September 30, 2025 out total of 8,659 CIRPs initiated from December 2016. The provisions relating to the corporate insolvency resolution process came into force in December 2016. Under the Insolvency and Bankruptcy Code, the creditors have realised Rs 4 lakh crore, under the resolution plans initiated during the period, which is around 170.1% of liquidation value and 93.79% of fair value (based on 1,177 cases where fair value has been estimated). 

The primary objective of the Insolvency and Bankruptcy Code is rescuing corporate debtors (CDs) in distress. RBI added that the code has rescued 187 CDs during April to September 2025, while the total number of such debtors since inception is 3,865. Further, the creditors have realised more than 32.4% in terms of percentage of admitted claims, till September 30, 2025. Besides, the total number of CIRPs ending in liquidation was 2,896, of which final reports have been submitted for 1,529 CDs. These corporate debtors together had outstanding claims of Rs 4.44 lakh crore, but the assets were valued at only Rs 0.17 lakh crore. It noted that the liquidation of these companies resulted in realisation of 90.7% of the liquidation value.

RBI pointed that 1,300 CIRPs that have yielded resolution plans till September 2025 took an average of 603 days for conclusion of process, while incurring an average cost of 1.1% of liquidation value and 0.6% of resolution value. Similarly, the 2,896 CIRPs, which ended up in orders for liquidation, took an average 518 days for conclusion. It highlighted that out of 8,659 CIRPs, 3,183 were related to manufacturing sector, 1,903 related to real estate, renting and business activities and 1,052 related to construction. Among others, were cases relate to wholesale and retail trade, hotels and restaurants, electricity and others, and transport, storage, communication.