New Delhi: The Economic Survey 2018-19 tabled by Union Finance and Corporate Affairs Minister Nirmala Sitharaman in the Parliament on Thursday stated that the ecosystem for insolvency and bankruptcy is getting systematically built out with recovery and resolution of significant amount of distressed assets as well as palpably improved business culture.
“The eco-system for insolvency and bankruptcy is getting systematically built out. It has already led to recovery and resolution of significant amount of distressed assets as well as palpably improved business culture,” the Survey said.
“Till March 31, 2019, the Corporate Insolvency Resolution Process yielded a resolution of 94 cases which has resulted in the settlement of claims of Rs 1,73,359 crore. Moreover, as on 28 Feb 2019, 6079 cases involving a total amount of Rs 2.84 lakh crores have been withdrawn before admission under provisions of IBC,” the Survey added.
Further, as per RBI reports, Rs 50,000 crore has been received by banks from previously non-performing accounts. RBI also reports that additional Rs 50,000 crore has been "upgraded" from non-standard to standard assets. All these shows behavioural change for the wider lending ecosystem even before entering the IBC process, it added.