Finance and Corporate Affairs Minister Nirmala Sitharaman stated in the Lok Sabha that the Insolvency and Bankruptcy Code (IBC) has played a critical role in enhancing the financial stability of India’s banking sector, contributing significantly to the recovery of non-performing assets (NPAs). The minister made these remarks while presenting a bill for further amendments to the IBC.
Information was available with The Chenab Times that Sitharaman emphasized the positive impact of the IBC on corporate entities, noting improvements in their performance and corporate governance standards after undergoing the insolvency resolution process. She was speaking on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which had been reviewed by a select committee.
The proposed amendments include 12 changes to the IBC, which was initially enacted in 2016. The minister highlighted that the IBC has been instrumental in improving the health of the nation’s banking sector. She added that banks have successfully recovered more than half of their NPAs through the resolution mechanisms provided by the code.
The government had introduced a bill to amend the IBC in the Lok Sabha on August 12, 2025. This bill sought to introduce several changes, including measures aimed at expediting the admission of insolvency resolution applications. The legislation was subsequently referred to a select committee of the Lok Sabha, which presented its report in December 2025. The IBC has undergone amendments on seven occasions since its inception.
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The Chenab Times News Desk
