Chennai, Aug. 19 -- Credit rating agency CARE Ratings today said the overall recovery rate under the Insolvency and Bankruptcy Code (IBC) till Q1FY26 marginally reduced to 32.57% from 32.76% in Q4FY25.
In a report released during the day, the credit rating agency said, the aggregate recovery continues to hover around 30%, indicating that the creditors face a haircut of around 67% on admitted claims.
"However, a measure of the effectiveness of the code is the ratio of resolution to liquidation. With several initiatives to improve outcomes, the ratio has improved from 0.20 in FY18 to 0.92 in Q1FY26," the report notes.
Meanwhile, the average time taken for resolution or liquidation continues to increase for operational creditors (OCs) and f...