The Insolvency & Bankruptcy Code (IBC) remained the most dominant mode of recovery of stressed assets for banks followed by SARFAESI Act in FY25.
This was even as the overall recovery rate improved only marginally from 17.2% to 18% between FY24 and FY25. Recoveries under Debt Recovery Tribunals slipped.
Recovery rate
The recovery rate under the IBC rose to 36.5% in FY25 as compared with 28.3% the year before, data from RBI’s Report on Trend and Progress of Banking in India showed.
Rcovery under the SARFAESI Act rose to 31.5% in FY25 as compared with 25.4% the year before. Of the Rs 1,04,099 crore recovered in FY25, the share of IBC was 52.4% or Rs 54,528 crore. The share was 49.5% in the previous year.