New Delhi, June 3 -- Creditors continue to suffer low recovery as resolving insolvency cases takes an average of 679 days, eight years after the Insolvency and Bankruptcy Code (IBC) came into force.

The longer the delay, the larger the haircut for lenders, a point that veteran banker Uday Kotak and several research reports made on the IBC anniversary citing data published by the Insolvency and Bankruptcy Board of India (IBBI). Very few insolvency cases have been resolved within the stipulated period of 330 days; in such cases the recovery has been close to 50%.

Mint looks at the cause of delays and what the new administration can do to improve outcomes for lenders and debtors.

The IBBI data show that 947 resolution plans were approved ...