Creditors continue to face steep haircuts under the Insolvency and Bankruptcy Code (IBC), with recoveries averaging just 33% as of June. Overall, lenders have realised ₹4 lakh crore from total admitted claims of ₹12.2 lakh crore, reflecting a 67% haircut.

In the June quarter alone, around ₹20,000 crore of debt was resolved, yielding recoveries of ₹6,200 crore—about 32%.

According to Kotak Institutional Equities, the quarter included five major cases with claims above ₹1,000 crore, where the 27% realisation was notably weaker than recent trends, driven largely by distressed assets in incomplete projects or sectors facing subdued buyer demand, according to a report by BusinessLine.

The realisation values are relatively low due to weaker assets where there are incomplete projects or sectors with very poor demand from buyers.