IBC Boosts Banking Sector Recovery, Sitharaman Says
Key Improvements in NPA Recovery
New Delhi, March 30 – Finance and Corporate Affairs Minister Nirmala Sitharaman stated in the Lok Sabha on Monday that the Insolvency and Bankruptcy Code (IBC) has been a key and very important factor in improving the health of the country’s banking sector, including the recovery of non-performing assets.The minister, piloting a bill for further amending the IBC in the Lok Sabha, emphasized that companies have been performing well and their corporate governance practices have also improved after undergoing the insolvency resolution process. These remarks were made while responding to the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by the Select Committee.
The Bill proposes 12 amendments to the IBC, which came into force in 2016.
According to Minister Sitharaman, the IBC has been a key and very important factor in improving the country’s banking sector. She added that banks have recovered more than half of the NPAs (Non-Performing Assets) through the resolution process.
The government introduced the Bill in the Lok Sabha on August 12, 2025, proposing a range of changes, including provisions to reduce the time taken for the admission of insolvency resolution applications. The Bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025.
The IBC has been amended seven times so far.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.