NEW DELHI, Mar 30: Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday told the Lok Sabha that the Insolvency and Bankruptcy Code (IBC) has been a crucial factor in improving the health of the country’s banking sector, particularly in recovering non-performing assets (NPAs).
Piloting the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, the minister said companies have shown improved performance and corporate governance after undergoing the insolvency resolution process.
Replying to the debate on the Bill, as reported by a Select Committee, Sitharaman said more than half of the NPAs have been recovered by banks through the IBC mechanism.
The Bill proposes 12 amendments to the IBC, which came into force in 2016, aimed at further strengthening the resolution framework.
Introduced in the Lok Sabha on August 12, 2025, the proposed changes include measures to reduce the time taken for admission of insolvency resolution applications.
The Bill was later referred to a Select Committee, which submitted its report in December 2025. The IBC has been amended seven times so far. (Agencies)
